Buy Aloca near the Bottom?

Alcoa (NYSE:AA) - Large Logo

Alcoa is trading near record lows.  Time to buy the aluminum king?

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 (Ninja Style)

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.