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Bought Some More KALU

|Includes:Kaiser Aluminum Corporation (KALU)

at 69.25, today, for Account II. Account II is now apx 60% NKE with JUL 72.5 calls sold against it and 40% KALU. KALU is trading around its 200 moving average. Q1 as reported on 4/23 was solid and maintained guidance going forward. KALU beat on earnings and revenues. Still a bit of an overhang in aerospace as customers work through their stock, but that appears to be diminishing. Aerospace remains strong as could be seen from BA's quarterly report and subsequent news and also from AA's quarterly report, where it actually increased projections for the aerospace segment. Autos were strong for KALU, and I expect that to continue to move in the right direction--I can hear the world's best selling vehicle--the F-150--rolling down the assembly line and look forward to its all new 2015, 700lb weight-saving, fuel efficiency-increasing, all alluminum body igniting the shift in mainstream automobile bodies from steel to aluminum. Just yesterday, I was reading that Fiat-Chrysler is now looking at shifting the Dodge Ram to aluminum in the next few years.

If you examine AA, its downstream segment does very well; it is its upstream segment that drags. Fortunately for KALU, it shed virtually all of its upstream business several years ago, allowing it to focus on the more lucrative and less commoditized downstream business. On 4/29, Cowen and Co. increased its price target for KALU from 73 to 76 and maintained its outperform rating on the stock. I thinks the stock is worth closer to $100. I have cash reserves in Account IV, should KALU fall further. Next up: 15 May, the .35 dividend is paid for my shares that I held prior to ex-div date of 4/23.

In other news, today, Putin announced that the Ukranian separatist referendum should be postponed and that he was pulling troops back from the border. Also, Yellen expressed relatively upbeat sentiments about the economy while suggesting a flexible and accomodative Fed policy as needed. Both Putin and Yellen's news today seemed quite dovish to me, and good for the markets.

On the micro front: Yesterday, DIS reported a great quarter. WFM disappointed and got crushed.

Disclosure: I am long KALU, NKE.

Stocks: KALU