Alcoa (AA) is downgraded to Hold from Buy at Jefferies: "We have said for some time that if/when...

Alcoa (AA) is downgraded to Hold from Buy at Jefferies: "We have said for some time that if/when Alcoa shares got an upside bump, we would be inclined to downgrade the stock. It did. We are downgrading. Within base metals, we strongly prefer the shares of Freeport-McMoran (FCX)." AA -0.6%, FCX -0.9% premarket.

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Comments (2)
  • Gary Bushwacher
    , contributor
    Comments (543) | Send Message
    Gee, I hope it does go down.


    I'm losing my shares to a covered call strategy and I want to buy back in and do it all over again.


    If you recall I predicted the share would breach $10 before year end. And would do so as soon as AL prices started to move; and they had to global recession notwithstanding because the price had fallen below cost to produce. Note price has gone from 82cts to 95cts in last 3 weeks


    And AA would have busted $10 were it not for this downgrade - but it will catch it's breath and head north again.


    Sure I could make more money with AAPL, but I am so overloaded there, it's scary.
    18 Sep 2012, 08:38 AM Reply Like
  • haleiwahu
    , contributor
    Comments (3944) | Send Message
    I have said all along that until the economy improves, (AA) will continue to struggle. My premise is that the biggest mining competition of Alcoa is the existing above ground recycle business. I don't have current figures on the volume of above ground inventory, but it is considerable. The life of recycled inventory is sufficient to cause a slow down in the mining of new metals.
    18 Sep 2012, 09:05 AM Reply Like
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