Alcoa: The Huge Bull Case Beyond Current Gloom And Doom

Sep. 19, 2022 12:17 PM ETAlcoa Corporation (AA)10 Comments
Leo Nelissen profile picture
Leo Nelissen
21.03K Followers

Summary

  • Alcoa has entered a difficult phase of the economic cycle as it now experiences lower demand, lower prices, and high input prices due to the lasting energy crisis.
  • The good news is that Alcoa is a better company now with streamlined operations, much lower demand, and a plan to reduce money-losing operations.
  • I expect aluminum prices to explode as soon as economic demand expectations improve. This opens up new opportunities for Alcoa and its shareholders.
  • Even under normal conditions, Alcoa is able to distribute high dividends. A demand rebound could be set to accelerate shareholder returns similar to what happened in 2020/2021.

Aluminum Maker Alcoa Plans To Cut 15,000 Jobs

Jeff Swensen

Introduction

It's time to talk about one of the world's largest aluminum companies. The Pittsburgh, Pennsylvania-based Alcoa Corporation (NYSE:AA) is almost 60% below its all-time high as it's down 30% year to date. The company is warning that the tide is

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TradingView (COMEX Aluminum)

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Alcoa Corporation

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This article was written by

Leo Nelissen profile picture
21.03K Followers
I'm a Buy-Side Macro Expert/Financial Markets Analyst. On Seeking Alpha, I discuss a wide range of topics including long-term dividend (growth) investments, mid-term trading opportunities, commodities, rates, and related. A big part of my philosophy is to incorporate as much macro as possible in my articles as it helps investors to make their own decisions and to be on top of all major developments. My DMs are always open. Also, I'm on Twitter (@Growth_Value_) in case you want to say hi! Long-Term Dividend HoldingsPSA, DUK, HD, PEP, RTX, UNP, VLO, DE, ABBV, CAT, HBAN, NSC, LHX, XOM, CVX, CP, LMT, NOC, CME, DHR, EXR

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This article serves the sole purpose of adding value to the research process. Always take care of your own risk management and asset allocation.

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