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
- Japanese Government Squanders Pension Funds On Failed Stocks As Losses Reach $130 Billion In Past Year | ZeroHedge
- Mugabe Orders Arrest Of "Rats We Call Athletes" After Zimbabwe Wins No Olympic Medals | ZeroHedge
- Bank of Japan Prepares for Crash Triggered by Fed Tightening | ZeroHedge
- J-Holed: Stocks Slide After "Good" Yellen, "Bad" Powell, & "Ugly" Fischer | ZeroHedge
- In "Victory For Eurosceptics" British PM Will Begin Brexit Negotiations Without Parliamentary Vote | ZeroHedge
- FBI Admits Clinton Used Software Designed To "Prevent Recovery" And "Hide Traces Of" Deleted Emails | ZeroHedge
- Assange Assassination Attempt? Cops Took 2 Hours To Respond To Embassy Breach | ZeroHedge
The most relevant financial news and articles from the Internets
- Oil spikes on report Yemeni missiles hit Saudi... | Business Insider
- Robo advisor Betterment partners with Uber | Business Insider
- Amazon claims another victim as Rackspace finally goes private in... | Business Insider
- The strange history of the EpiPen, the device developed by the military that... | Business Insider
- Here's how drone usage is set to explode by 2020 | Business Insider
- The University of Chicago sent a bold letter to its incoming... | Business Insider
- 10 things emotionally intelligent people refuse to think | Business Insider