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Richard Saintvilus loves Alcoa (AA) but hates the stock: The company is performing as well as...

Richard Saintvilus loves Alcoa (AA) but hates the stock: The company is performing as well as can be expected considering double-digit declines in aluminum prices, but there's also no near-term catalyst to suggest the stock should be trading above current levels. AA continues to work on productivity and efficiency improvements, but for now, Wall Street isn't interested in waiting.
Comments (7)
  • Brian Gilmartin, CFA
    , contributor
    Comments (1100) | Send Message
     
    AA trading about 75% of tangible book value. Hard to get cheaper than that.
    24 Aug 2012, 06:01 PM Reply Like
  • Gary Bushwacher
    , contributor
    Comments (508) | Send Message
     
    AA the stock is doing PDG (pretty damn good) for a company at the mercy of worldwide aluminum commodity prices, which have been as at a 1 yr low, and almost at a 5 yr low.

     

    I say "has been" because alum prices are creeping up, because whether or not the world economy picks up the cost of the metal can't stay below the cost to produce for long. It's going up one way or another, demand or otherwise.

     

    I submit that AA will be it doulble digits soon, before end of year. And that my friends represents a 25% gain . . . almost as good as you can expect from the likes of AAPL, for a fraction of the price.
    24 Aug 2012, 10:29 PM Reply Like
  • Brian Gilmartin, CFA
    , contributor
    Comments (1100) | Send Message
     
    earnings estimates still coming down, Gary. I think the 3rd quarter is the bottom though.
    25 Aug 2012, 10:05 AM Reply Like
  • Gumby
    , contributor
    Comments (2284) | Send Message
     
    We have no problem paying $1600 for a lousy ounce of gold while we grumble about paying $1 for a pound of aluminium?????
    25 Aug 2012, 12:18 PM Reply Like
  • itinerantinvestor
    , contributor
    Comments (48) | Send Message
     
    With coming CAFE requirements, the auto industry will be using more an more aluminum. Ford is making their best seller, the F150, with an aluminum truck bed. I am long AA and am adding to my position on down days. Buy low, sell high. I can wait.
    25 Aug 2012, 08:04 PM Reply Like
  • Brian Gilmartin, CFA
    , contributor
    Comments (1100) | Send Message
     
    thx, itinerant.
    26 Aug 2012, 10:23 AM Reply Like
  • bigvic9454594
    , contributor
    Comments (3) | Send Message
     
    Im with itinerant....Also with backlogs of airplanes going out 8 yr +/- it should be a good future for alcoa. Double in 3-5 yrs. Thats annualized to bout 16%+. Global economy will mend. Europe will mend. And in my opinion a version of Simpson-Bowles will be passed in March or April retroactive to Jan 1st; finally giving some clarity!
    4 Sep 2012, 02:38 AM Reply Like
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