Durable goods are your friend mostly in bad times, but should be picked up in good times, though I'm not sure that's a good argument for American Aluminum.
2/22/2015
Alcoa Inc (NYSE:AA)
Manufacturing generally, cars specifically, and a host of industry needs Aluminum, and Alcoa is the third largest producer of Aluminum in the world (behind Rio Tinto Alan and Rusal). It's a commodity so there is some merit there, but I view this as manufacturing play.
Price at write-up $15.79
Trade Target 14.50
Investment target: $8.
Valuation Ratios
Price/Earnings (TTM) . . . . .77.67
Price/Sales (TTM) . . . . . . . 0.81
Earnings per share . . . . . . .0.2
Price/Book (MRQ) . . . . . . .1.57
Price/Cash Flow (TTM) . . .12.62
Held by institutions . . . . . . . 63.51
Short interest . . . . . . . . . . . .3.08
Dividend . . . . . . . . . . . . . . . $0.12/0.75%
MarketCap 19.3B
I'm not hugely impressed by AA's cash flow, income and earnings growth is impressive year over year, but that's only because they moved from losing 2.3 billion to earning 0.16 billion. A 2.4 billion dollar increase seems like a lot, but when you look at a 3-year trend and annual statements there's nothing impressive here for an investor. Let's not forget that this is an American company with Union American employees without an edge to keep cheaper products from Russia & China out of the market. A trader however, likely sees a lot due to the current trend and relative volatility I think you could do well holding this stock even for a day (if you can predict the future). For me though, I just don't see anything here than a company that is propped up by domestic interests that will only survive as long as it keeps receiving crutches & support. Maybe this is true of all the American metals industry, but that's more of an indication that you shouldn't be exposed to the American metal's industry than anything else. My car doesn't care where the Aluminium came from.
(Due Diligence) ACH, CENX, DDC, CSTM
Alcoa Inc (NYSE:AA)
Manufacturing generally, cars specifically, and a host of industry needs Aluminum, and Alcoa is the third largest producer of Aluminum in the world (behind Rio Tinto Alan and Rusal). It's a commodity so there is some merit there, but I view this as manufacturing play.
Price at write-up $15.79
Trade Target 14.50
Investment target: $8.
Valuation Ratios
Price/Earnings (TTM) . . . . .77.67
Price/Sales (TTM) . . . . . . . 0.81
Earnings per share . . . . . . .0.2
Price/Book (MRQ) . . . . . . .1.57
Price/Cash Flow (TTM) . . .12.62
Held by institutions . . . . . . . 63.51
Short interest . . . . . . . . . . . .3.08
Dividend . . . . . . . . . . . . . . . $0.12/0.75%
MarketCap 19.3B
I'm not hugely impressed by AA's cash flow, income and earnings growth is impressive year over year, but that's only because they moved from losing 2.3 billion to earning 0.16 billion. A 2.4 billion dollar increase seems like a lot, but when you look at a 3-year trend and annual statements there's nothing impressive here for an investor. Let's not forget that this is an American company with Union American employees without an edge to keep cheaper products from Russia & China out of the market. A trader however, likely sees a lot due to the current trend and relative volatility I think you could do well holding this stock even for a day (if you can predict the future). For me though, I just don't see anything here than a company that is propped up by domestic interests that will only survive as long as it keeps receiving crutches & support. Maybe this is true of all the American metals industry, but that's more of an indication that you shouldn't be exposed to the American metal's industry than anything else. My car doesn't care where the Aluminium came from.
(Due Diligence) ACH, CENX, DDC, CSTM