Question regarding AA

JakeandBA · Feb 16, 2012

So looking at AA:

8 analysis are a hold 4 are at a buy 5 at a strong buy

11.53 is the analysis median price target

the sales est for the yr -3.60%

growth est for this yr is neg

PEG ratio is at .97 est with industry est 1.34 sector 1.15 and S&P 2.55

Cost for pension seems to be a drain, cost for energy for operation appears to be a drag, a glut of Aluminum.

Missed growth projection of 12% and hit 10% this yr.

27% sales exposure to europe.

gross margin is at 19.6 industry is 15.9 s&p 46.90

Alcola is the largest player in this market for aluminum. I dont see where they can increase price with the glut on the market.

i have not even listed the quarterly revenue increase or decrease as well as the annual numbers.

Without the economy really starting to take off in the US and Europe, how can this company be profitable.

If you own this stock, should it not be a sell?

snoop · Feb 17, 2012

If you trust the numbers on its balance sheet, book value for common share is about $11/share, so the analysis is very closed to the mark. Alcoa has plenty of cash on hand right now, they could whether another downturn with no problem

http://www.sec.gov/Archives/edgar/data/4281/000119312512065493/d257313d10k.htm

I think it's a solid company, but the market overall is very near top now, some meaningful correction might be just around the corner.

I'm looking to add if it goes below $9.

CoachCB · Feb 26, 2012

I'm in this stock as well, only 200 or so shares. It pays a modest dividend and has potential to go up 5-10% this year. I'm staying in AA for a while.

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CHOPTALK · Feb 26, 2012

The first step is to realize you have a drinking problem.

SmallDaddy · Feb 27, 2012

IMO stocks like this give you an insight as to what the future might hold.

A year ago with the Dow around 13K, AA was at 17
A year later Dow is back at 13K but AA 10.43

Interesting, no?

snoop · Feb 28, 2012

If you hold it for 10 yrs, it lost 73%. Interesting, no?

CoachCB · May 20, 2012

In the tank....

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CoachCB · Sep 14, 2012

This has made a huge comeback! Up to $9.80 today....

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CoachCB · Feb 3, 2014

This stock made a huge comeback. Down to under $7...and recently shot up over $12. I sold just over $10 (I was in for just under $10). Not much of a profit, but w/ dividends I'm glad I held on. Was too chicken to hold on longer, could have made a nice profit if I waited for it to hit $12.