Buy Aloca near the Bottom?
Alcoa Inc's (AA) latest earnings call did not impress the Street and as a result its stock price was crushed. Alcoa shares have been cut in half since April and its now 2% away from its 52-week low.
The company reported a loss in Q2 2012 of $2 million. That's a bad deal when compared to their stellar Q1 2012 results of $322 million in profit. Alcoa blamed its problems on lower aluminum prices -- same ol' song.
Alcoa said that aluminum prices dropped 18% year-over-year and 4% in the Q2, its ugly. Simply put -- Investing in Alcoa is a gamble on when will the price aluminum finally tick higher.
Alcoa did reiterate its 2012 guidance that that aluminum demand will grow by 7% globally. The company also continues to expect that there will be a deficit in global aluminum supply in 2012.
MASTERY Bottom line:
Alcoa is in the dumps now, but for how long? Mastery likes the low share price and 1.4% annual dividend yield. It provides some comfort while we wait for better aluminum prices. Should this stock hit a new 12 month low, its a buy.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- How James Altucher and Ramit Sethi Helped Me Earn $50,000+ In The Past 40 Days | Altucher Confidential
- Signs of Excessive Bullish Sentiment | Financial Sense
- No ID, No Problem - Feds Overrule North Carolina Voting Rules As "Discriminatory" | ZeroHedge
- Amazon Smashes Expectations As Cloud Profits Soar; Stock Dips Then Jumps | ZeroHedge
- US Oil Rig Count Rises At Fastest Rate Since Jan 2010 | ZeroHedge
- Trump, Clinton, "Ugliest" Election Coming - Gold's "Summer Doldrums" Prior To Resumption of Bull Market | ZeroHedge
- Get Ready For America's New $29 Trillion Debt | ZeroHedge
The most relevant financial news and articles from the Internets
- These smart sneakers will help you find Pokémon in 'Pokémon GO' | Business Insider
- Here's another reminder that Amazon is crushing... | Business Insider
- Dozens of people flocked to Central Park Wednesday night to catch a rare Pokémon | Business Insider
- You can completely customize your next pair of Ray-Ban sunglasses — here’s how | Business Insider
- 5 US service members were injured while operating near... | Business Insider
- A Washington Post reporter was barred from entering a Mike... | Business Insider
- Chipotle is opening a burger chain | Business Insider