At full, ramped-up capacity, Alcoa’s joint venture will make up almost a quarter of the company’s total smelting capacity.
Alcoa should see the profitability of its primary business grow in 2015. Lower energy costs are likely to benefit upstream operations.
Rio Tinto (RIO), BHP Billiton (BHP), and Alcoa are among the major players in the aluminum production industry with upstream operations.
Producers including Alcoa (AA), Century Aluminum (CENX), and BHP Billiton (BHP) should benefit from strong aluminum demand in 2015.
There’s been a lot of discipline among major aluminum plays such as Alcoa. Over-production was an issue for nine years, but no more.
In this series, we’ll pay special attention to Alcoa’s 2014 performance and to how investors can play Alcoa and other aluminum companies in 2015.
Marathon Petroleum Corporation (MPC) recently announced an agreement with Enbridge Energy (EEP) to serve as an anchor shipper on its Sandpiper Pipeline.
MPLX LP’s (MPLX) primary growth strategy is to accelerate its annual distribution growth rate to average in the mid-20% range over the next five years.
With a rising rate environment on the horizon, it would make sense to shift your focus to cyclical stocks and away from defensive sectors.
Valuations are at the higher end of their historical range. Investors should avoid defensive sectors, which are highly sensitive to interest rate changes.
REITs are providing an average dividend yield of 3.5%, so investors are drawn to them. This is causing rich valuations and making REITs look overpriced.
A market rebound of more than 12% from the depths seen in October has left investor sentiment buoyant.
Emerging markets look extremely attractive based on relative valuation. US markets are richly valued with the price-to-earnings ratio (or PE) hovering around 18x.
Defensive stocks have become expensive. Investors have been worried about growth slowing down. Economies have been struggling across the globe.
The rates for capital gains tax depend on the asset’s holding period. If the holding period is less than one year, short-term capital gains tax is payable.
We’ve seen a phenomenal market rally this year. Currently, the S&P 500 (SPY) is giving spectacular returns of 11.6% year-to-date (or YTD). The Dow Jones Industrial Average (DIA) is up 7.6% YTD.
Currently, the tech sector is trading at 20x its earnings. This is much lower than its 20-year average of 39.6x. However, the sector is trading at slightly above its ten-year average—19x.