- Alcoa (AA) a high flier? So it seems: Just one week after a dismal Q4 earnings report dragged AA to the bottom of the S&P 500, investors decided it wasn't so bad and have sent shares climbing more than 12%.
- Shares have jumped nearly 50% since hitting a low close of $7.70 on Aug. 30 and have even gained 35% since they were yanked from the Dow on Sept. 20.
- 24/7's Charley Blaine cites three main reasons: AA is cutting capacity in its primary smelting business where it is no longer competitive; the auto industry is moving to aluminum in a big way; and the booming airline industry is craving AA's light but strong aluminum alloys.
- Even Jim Cramer is now on board, saying that an improving global economy means that when inventories are finally worked off and new, lower-cost facilities are in place, "the amount of money that will be made off of a slight increase in sales could be shocking."
Alcoa shakes off earnings miss, powers to 12% pickup this week
Jan 18 2014, 08:25 ET