Alcoa Stock Will Likely Rally More, Looks Like a Good Buy Now
Green Metal Stocks Help Make Your Portfolio More Sustainable
Why It’s No Surprise that Alcoa Cut Aluminum Demand Guidance
Alcoa has revised down its 2016 global aluminum demand growth projection to 5%.
Could Alcoa’s Split Create Shareholder Value?
As an Alcoa (AA) shareholder, you might like to know whether the split will create value. The value, in this case, would basically mean whether the two separate companies would be worth more than the combined entity.
All of the Base Metals Recovered Except for Tin
After a string of losing days, base metals recovered on January 13, 2016. Except for tin, all of the base metals rose on January 13 in the LME.
Base Metal Miners Recover
In the week ended December 26, the equities of all major base metal miners gained, recovering from losses in the week prior.
Alcoa’s 2Q16 Earnings: What Can Investors Expect?
Alcoa (AA) is expected to release its 2Q16 earnings on July 11. The company is in the final stages of its split, which will create two new entities.
Expanding Service Sector Gives Relief to Economy in September
With manufacturing slowing, a reading of the Non-Manufacturing Index at an above-neutral level (56.9) may provide some relief to the US economy, which is highly dependent on the service sector for its economic growth.
Interest Rate Woes Continue to Haunt the US Stock Market
Now that the Fed’s meeting is over, the timing of the rate hike has made investors anxious. The delay in the rate hike is a sign of the health of the domestic economy.
Why Did Copper Ignore Stimulus from China?
Copper prices experienced a roller coaster ride on Monday after important market-moving news from China.
Base Metal Miners Declined the Week Ended January 2, 2016
The equities of major base metal mining companies fell in the week ended on January 2. Freeport-McMoRan, one of the leading copper producers, fell last week and ended in a loss.
Base Metal Miners on Tuesday, March 22: Some Up, Some Down
Freeport-McMoRan (FCX), one of the largest copper miners, rose for the second consecutive trading day on Tuesday, March 22, 2016. It closed the day at $10.99, a rise of 1.8%.
How a Slowing Economy Impacts the US Labor Market
The health of the US labor market is possibly the primary reason the FOMC (Federal Open Market Committee) had confidence to raise interest rates in December 2015
Alcoa’s Leverage Ratio Misses The Mark
Alcoa’s leverage ratio has increased over 2Q 2014. This basically means that the proportion of debt in Alcoa’s capital structure has increased.
Why Alcoa is improving its competitive position
Alcoa idled several smelting plants since 2007. Its aluminum smelting capacity has come down by 28% over the period. Most of these smelters had high unit production costs.
Will Consumers End Up Paying to Save US Steel Companies?
Tariffs, like the one imposed by President Trump, could end up raising prices for consumers.
Base Metals Dive after Opening the Week on a Surge
All base metals declined that day on the LME, and LME nickel was the biggest loser of the day in base metals with a decline of 2.8%.
Election Over, Market Still Undecided
We know the nation is politically divided, and now the market is showing us its split personality as well.
Base Metals Continue to Rise in the London Metal Exchange
The base metals found some relief on January 13, 2016. They carried the same positive sentiment to January 14. All of the base metals rose in the LME.
Aluminum company metrics compared
Trading on the London metal exchange determines the price for primary aluminum. Any increase in the price of aluminum benefits companies that produce primary aluminum.
China’s April Trade Data: What It Means for Metal Investors
China released its April trade data on May 8. The data weren’t received well by investors. Asian markets were trading lower in early trade.
Could the OPEC Meeting Have an Impact on Alcoa?
It could be déjà vu for Alcoa (AA) investors after the OPEC meeting on December 4, 2015. Last year’s decision to maintain daily crude output had a negative impact on all commodities.
Must-know: Alcoa’s third quarter portfolio transformation
Alcoa announced the acquisition of Firth Rixson. Firth Rixson is the largest jet engine ring manufacturer. It gets ~75% of its revenues from aerospace industries.
Why the Aluminum Supply Deficit Is Not Causing Premiums to Strengthen
US Midwest aluminum premiums are currently quoted at $0.07 per pound. Premiums have fallen slightly in July and are now down more than 22% year-to-date.
Lower Aluminum Prices Dint Alcoa’s 1Q 2015 Earnings
Alcoa prices its aluminum with a 15-day lag to LME aluminum prices. Its 1Q earnings lost $84 million due to a decline in aluminum prices.
Why Alumina Prices Are a Challenge for Alcoa
The decline in alumina prices is a concern for Alcoa. The profitability of its alumina operations would be hit due to lower alumina prices.
Part 3–Starwood Hotels & Resorts—a mid cap growth stock that is fully booked
Strong Momentum in HOT The below graph reflects the strong performance of Starwood Hotels and resorts, HOT, which was particularly strong until the 2008 crisis, and is once gain handsomely outperforming the Morningstar mid cap growth total return index. While just a bit below the S&P 400 index over the years, Starwood Hotels has been […]
Can Higher Chinese Aluminum Exports Spoil Alcoa’s Party?
China exported 350,000 metric tons of unwrought aluminum in October. Chinese aluminum exports fell ~1.8% YoY in the first ten months of 2016.
2 Factors That Could Impact Aluminum Premiums In 2015
Aluminum premiums are negotiated between aluminum warehouses and the end buyers. This makes them less susceptible to speculation.
How Integrated Operations Would Be Alcoa’s Competitive Advantage
Alcoa (AA) has integrated operations. Under the current market scenario, integrated operations could become Alcoa’s competitive advantage.
Alcoa’s 2016 Guidance Adds Gloom to 3Q Earnings Disappointment
During its 3Q16 earnings call, Alcoa lowered the business targets for all three segments under Arconic.
What Analysts Expect from Century Aluminum’s 3Q15 Earnings
According to data compiled by Bloomberg, Century Aluminum is expected to post revenues of $445.7 million in its 3Q15 earnings release. In 2Q15, it had net revenues of $523.5 million.
How Does Alcoa’s Record Aluminum Deficit Projection Look?
Earlier, Alcoa projected a 1.1 million metric ton deficit for global aluminum markets. It revised down its deficit projection during its 2Q16 conference call.
Aluminum Executives Discuss the Industry Outlook
For commodity companies like Rio Tinto (RIO), the industry outlook is as important, if not more important, than the company’s position in the industry.
Aluminum Industry Outlook: What Do Top Executives Have to Say?
Aluminum industry outlook For commodity companies like Rio Tinto (RIO), industry outlook is as important—if not more important—than the company’s position in the industry. Let’s see what senior aluminum executives have had to say about the aluminum industry’s outlook during their companies’ 3Q16 earnings calls. Century Aluminum Century Aluminum (CENX) expects two million metric tons […]
Trouble Ahead For Alcoa? Halcyon Days Of 2014 Could Be Over
Aluminum prices were strong for most of 2014. But OPEC changed all that last fall when it decided to maintain crude oil output levels.
Did Alcoa Just Bail Out Century Aluminum?
Century Aluminum’s earnings have come under severe pressure because of the steep correction in aluminum prices. The company posted a gross loss in 3Q15.
Alcoa Lowers Guidance for Aerospace Business for the Second Time
During its 3Q16 earnings call, Alcoa reduced its EPS segment’s fiscal 2016 revenue guidance to $5.6 billion–$5.8 billion from $5.9 billion–$6.1 billion.
Rio Tinto: In-Line Aluminum, More-than-Expected Bauxite Production
Rio Tinto (RIO) and Alcan combined in 2007 to form Rio Tinto Alcan, a global leader in the aluminum industry. Its fully integrated facilities include high-quality bauxite mines…
Engineering Alcoa’s Success In 2015
Alcoa’s engineered products and services In the previous part of this series, we discovered that the engineered products and services segment is Alcoa’s (AA) most profitable. In this part, we’ll look at two factors that will drive this part of the business in 2015. Non-residential construction Alcoa earns almost $1 billion in revenues from the non-residential construction industry. Non-residential construction is picking up, […]
Will the Demand-Supply Mismatch Spur Chinese Aluminum Exports?
China’s unwrought aluminum exports rose 20.4% YoY in August. Although the increase is a concern, things aren’t as bad as suggested by the big YoY spike.
US-China Trade War: Tariffs despite Continued Talks
The US (SPY) and China (FXI) have imposed tariffs on $16 billion worth of goods. The tariffs were imposed despite talks in Washington, DC.
Why Is Netflix Expected to Open Higher on January 19?
After the market closed on Wednesday, Netflix (NFLX) posted upbeat fourth quarter earnings. It reported $2.48 billion in revenue in the fourth quarter.
Was Alcoa Smart to Sell Mt. Holly Smelter to Century Aluminum?
In 2014, Alcoa (AA) sold its stake in the Mt. Holly smelter to Century Aluminum (CENX).
Key Takeaways from Alcoa’s 4Q16 Earnings Call
The question of restarting US plants cropped up during Alcoa’s 4Q16 earnings call. However, Alcoa’s management sounded wary.
Is the Projected Surplus Weighing on Copper This Year?
Copper’s apparent demand has been better-than-expected this year on the rise in Chinese construction activity coupled with an increase in the country’s bonded stocks.
China Has A Limited Impact On The Global Aluminum Industry
Bauxite is the main raw material in aluminum production. China lacks high-quality bauxite reserves. Until last year, China was relying on bauxite from Indonesia.
How Do Aluminum Inventories Work?
Aluminum inventories with London Metal Exchange (or LME) registered warehouses have declined this year. Aluminum inventories have been on a decline for almost two years.
Must Know: What Value Can Elliott Management Add to Alcoa?
Elliott Management noted that it plans to engage in a “constructive dialogue” with Alcoa’s (AA) board regarding Alcoa’s split transaction and “additional available opportunities to maximize shareholder value.”
Alcoa Is Optimistic about Aluminum’s 2018 Outlook
Alcoa (AA) reported its 4Q17 earnings on January 17, 2018, after the markets closed. The company posted an adjusted EPS of $1.04 in 4Q17.
How Alumina Prices Affect Century Aluminum
Alcoa (AA) is an integrated aluminum producer like Rio Tinto (RIO) and Norsk Hydro (NHYDY) and produces alumina and aluminum (DBB).
Why Arconic Investors Can Find Solace in Alcoa’s Gains
While Alcoa (AA) has seen upward price action following its split, Arconic (ARNC) has sagged. However, Arconic’s investors can still find some solace in Alcoa’s gains.
Aluminum Companies’ Valuation: Key Investor Takeaways
Alcoa’s (AA) valuation has fallen over the last year. Currently, it trades at a discount to its five-year average. The valuation fell for a reason.
Alcoa’s Split: Is the ‘Crown Jewel’ Doing as Expected?
When the split was announced last year, Arconic was supposed to be the crown jewel that would help drive value for shareholders once listed as a separate entity.
Should Lower Alumina Prices Bother Alcoa and Other Producers?
Although lower alumina prices might not immediately lead to a decline in aluminum prices, they certainly could limit aluminum’s upside.
How Do Aluminum Producers Look Going into 3Q16?
Most aluminum producers’ earnings were received well by markets. Alcoa (AA) saw an upward price action of 5.4% after its earnings release.
US Steel Stocks in Line of Fire as Trump Takes on China
President Trump has hardened his stance on trade issues, threatening tariffs on billions of dollars of Chinese goods.
How Analysts Are Rating CENX Leading Up to Its 4Q16 Results
In this article, we’ll analyze how analysts are rating Century Aluminum leading up to its 4Q16 earnings.
How Can Century Aluminum Manage the Current Downtrend?
Fortunately for Century Aluminum, its leverage ratios are currently much lower than other companies in this space. CENX has $123 million in cash that should help it manage its operations over the next few quarters
Must-know: 3 expansions that will drive Alcoa’s automotive sales
The Saudi Arabia JV is expected to produce its own electricity. The Middle East has access to cheap fuel sources. As a result, the overall production cost is expected to be lower in this plant.
Global Supply to Rise as China Eases Aluminum Export Taxes
In its latest move, China has removed the export duty on several products, including rods and strips made from primary aluminum.
Why Stanley Druckenmiller Dissolved His Position in Barrick Gold
Druckenmiller has sold the firm’s position in Barrick Gold, which shows that he might have a strong outlook on the equity market.
New Smelter to Keep Rio’s Aluminum Production Strong
Currently, the aluminum industry is plagued with overcapacity amid weakening demand. This has led many players to announce capacity curtailments in 2016.
Must-know: Alcoa’s Aerospace Segment Is Important
The aerospace segment is the one of the biggest aluminum consumers in the world. Alcoa (AA) got $4 billion in revenue from aerospace companies last year.
Are aluminum vehicles really good for the environment?
According to the steel industry, aluminum production is energy intensive. As a result, it isn’t an environmentally-friendly metal—like it’s made out to be.
Watch for the Effect of Commodity Prices on Alcoa, Arconic
Alcoa (AA) is gearing up for its split, which is scheduled in the second half of 2016. After the split, the value-added company—which will be named Arconic—will produce precision components and other value-added products.
Alunorte Shutdown: Norsk Hydro’s Pain Is Alcoa’s Gain
Norsk Hydro (NHYDY) has announced a production halt at its Alunorte alumina refinery in Brazil.
Base Metals Hammered by Weak Chinese Data
China is the top consumer of base metals, accounting for 45% of global demand, so economic releases from China have a large impact on base metal prices.
Supply Uncertainty: Aluminum Takes the Baton from Copper
In 2018, analysts expected disruptions in the copper supply. However, the copper supply has been resilient in 2018.
Can Century Aluminum Continue Its Rise?
Century Aluminum (CENX) was among the best-performing aluminum stocks in 2016, with gains of 94%.
Rio’s Aluminum Division Didn’t Bow to Commodity Price Pressures
Rio Tinto’s (RIO) Aluminum division contributed 19% of its 1H16 underlying EBITDA (or earnings before interest, tax, depreciation, and amortization).
How Alcoa Looked In 2014
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.
Are Century Aluminum’s Valuations Looking More Attractive?
In this part, we’ll look at Century Aluminum’s valuation multiples after its 2Q15 earnings release.
Why Profit Margins Vary across the Aluminum Value Chain
The profit margins vary across the aluminum value chain. Upstream aluminum producers’ earnings depend on their position on the cost curve.
Will Rio Tinto’s Quality Aluminum Assets Be Enough?
The aluminum division contributed to 23% of Rio Tinto’s (RIO) 1H15 underlying EBITDA (or earnings before interest, tax, depreciation, and amortization).
Arconic’s Tough Beginning: Controversies and Battles
Arconic is scheduled to release its 1Q17 earnings on April 25. ARNC was listed as a separate entity on November 1, 2016, when Alcoa split into two entities.
Must-know: Playing the aluminum value chain
Bauxite is the most abundant metal in the earth’s crust. Because of the many impurities in bauxite, it must be refined to produce alumina.
Do Arconic’s Short-Term Challenges Outweigh Long-Term Drivers?
The expected synergy from Alcoa’s acquisition of Firth Rixson could be a key driver of Arconic’s (ARNC) medium-term performance.
Leveraged Loan Issuance Was Almost Stable Last Week
The US leveraged loans market saw an allocation of $4.75 billion worth of dollar-denominated senior loans in the week to April 29.
Base Metals Fell Last Week: FCX, AA, GLNCY, BHP
In the week ended on January 9, all base metals on the London Metal Exchange (LME) declined. The LME 3M Lead was the biggest loser of base metals last week with a loss of 9.6%.
Alcoa Beats Wall Street Expectations Again
Aluminum premiums more than doubled in 2014, which benefited primary producers like Rio Tinto and BHP Billiton.
Why investors need to understand the cost curve
Primary aluminum and alumina are commodity products. Producers don’t have much control over their pricing. The prices are decided by market dynamics.
Tariff Plan: Will the Desired Objective Be Achieved?
We could see a spike in US steel and aluminum production this year. Tariffs could reduce imports to some extent.
SPY Heavily Weighed Down by the Energy and Materials Sectors
All the component sectors except utilities in the SPDR S&P 500 ETF (SPY) fell in yesterday’s trade. The Energy Select Sector SPDR Fund (XLE) fell 2.5%.
Why XME Is a Bet on the US Metals and Mining Industry
The metals and mining sector has outperformed the Market (DIA) by a wide margin this year. In this series, we’ll do a structural and quantitative analysis of the SPDR S&P Metals and Mining ETF (XME).
Will Alcoa Suffer the Same Fate as US Steel Companies?
If China doesn’t cut its aluminum smelting capacity meaningfully, aluminum might suffer the same fate as steel. US steel companies have been reeling under the impact of steel imports for quite some time.
A brief history of aluminum fabricator Constellium
Constellium is engaged in the aluminum fabrication business. Fabricators give custom shape and size to primary aluminum.
Alcoa Maintains 2017 Guidance, Ups Demand Forecast
Alcoa (AA) expects to generate adjusted EBITDA between $2.1 billion and $2.3 billion in fiscal 2017. Alcoa assumed aluminum prices at $1,900 per metric ton.
Will Elliott Management Start Taking an Active Interest in Alcoa?
Elliott Management plans to engage in a “constructive dialogue” with Alcoa’s board about Alcoa’s split transaction and “additional available opportunities to maximize shareholder value.”
Is the Physical Aluminum Market Really Tightening?
Weak sentiment in physical aluminum markets could be a reason behind the divergence between Alcoa (AA) and aluminum prices.
Alcoa’s Automotive Sales Could Be Hurt By Fall In Crude Oil Price
Crude oil prices impacted Alcoa’s automotive sales. Under its transformation strategy, Alcoa (AA) is working to address the automotive companies’ lightweighting needs.
Key Drivers Of Alcoa’s Midstream Operations In 2015
Midstream operations, or global rolled products, produce aluminum sheets that are used in the packaging, automotive, and aerospace industries.
What Do Aluminum Executives Think about the Industry Outlook?
While aluminum demand is still rising, there are varying estimates about aluminum consumption.
A Look at Rio Tinto’s Aluminum Production in 1H16
Rio Tinto (RIO) and Alcan combined in 2007 to form Rio Tinto Alcan, a global leader in the aluminum industry.
Capacity Curtailments Could Help Increase Alcoa’s Cost Positioning
Alcoa is working to reduce the unit production costs for its plants. If this is not possible, the company could idle these plants.
Markets Will Await These Updates from Alcoa’s 1Q17 Earnings Call
In 1Q17, there were rumors that Rio Tinto (RIO) could acquire Alcoa.
Alumina Price Volatility Makes Companies Rethink Strategies
Global aluminum markets have seen significant volatility this year. Aluminum prices topped the $2,500 per metric ton level in April.
China’s Supply-Side Reforms Could Impact Aluminum in 2018
Alcoa (AA) expects global aluminum demand to exceed supply in 2018 on China’s supply-side reforms.
Are Markets Overreacting to Alcoa’s Second-Quarter Earnings?
Alcoa (AA) released its second-quarter earnings on July 18. The company reported revenues of $3.6 billion in the second quarter.
How Does Alcoa’s Valuation Look Going into 2017?
Currently, Alcoa is trading at 8.6x its forward EBITDA. This valuation multiple looks somewhat aggressive for a pure-play commodity producer.