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Interesting Trading In KALU, Today

|Includes:Kaiser Aluminum Corporation (KALU)

Average daily volume for KALU is apx 189,000 shares. Today, KALU traded 456,207 shares: 329,400 of that traded at apx. 11:46 AM for 68.50, slightly up from the previous day. Who was buying? Who was selling? Nice to see support for a trade that large; i.e, a sale of 329,400 shares did not send this lightly traded stock plunging. Somebody with big $ likes KALU.

KALU is in the sweet spot in some ways, flying under the radar. Investor sentiment has turned against the momo stocks that sport little in the way of earnings and no dividends. Likewise, investor sentiment has pursued high yielding, relatively low multiple stocks, regardless of the quality of those yields and the coverage of them. KALU is neither a momo nor a high yielder. Rather it sports a modest yield supported by earnings rather than borrowings and with plenty of coverage in the event earnings take a dive (or thinking more positively, plenty of room to grow the dividend). KALU has a strong balance sheet, and reasonable growth prospects at a reasonable price.

In a sense, some companies are so shareholder unfriendly that they don't commit to buybacks and dividends, while other companies are so shareholder friendly that they spend too much on dividends and buybacks rather than safeguarding their balance sheets and reinvesting in the business. KALU is in balance: shareholders are rewarded with responsible buybacks and dividends while the company retains enough earnings to maintain a strong balance sheet and to reinvest in the business.

So fly under the radar, KALU--you'll be found eventually. Looks like somebody found you, today!

Disclosure: I am long KALU, NKE.

Stocks: KALU