Melt the Hate for Alcoa

 | Jan 16, 2014 | 11:32 AM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

aa

,

f

,

nat

Notice that Alcoa's (AA) back to where it was before it reported?

Some of that is because of the "light-weighting" thesis that CEO Klaus Kleinfeld has been preaching: the notion that trucks and cars need more aluminum because it is so much lighter than steel but just as tough.

But another factor is the continued rationalization of the company's facilities. Last night, Alcoa closed one more high-cost facility, this time in Massena, N.Y., that produced 84,000 high-cost tons of aluminum per year. This is all part of the 400,000-ton review that started last year. The goal is to move up Alcoa as a low-cost smelter because the commodity never seems to lift in value, so low-cost production is the only savior.

Alcoa is hated. When I praise Kleinfeld, I am told that I have a blind spot for him. I reiterate that he has done remarkably well in a horrendous industry. This move last night is just a continuation of the good news flow, like the introduction of Ford (F) pickup trucks' aluminum content the day before, and I expect a lot more good news (certainly more than bad) as the year continues.

Random Musings: Getting some real traction on my Nordic American Tankers (NAT) call. It has always been wrong to chase this stock; however, day rates have truly skyrocketed, so I would consider it interesting up here for a speculative position.

Columnist Conversations

The prominence (and amount of) of the discounting in the malls this weekend has been very noticeable. One are...
3 insiders sold a total of 518,620 Starbucks (SBUX) shares for proceeds of $43.449 MM. 4 insiders dumped 558,1...
Yum Brands saw both insider buying and selling reported last week. One insider bought 10,000 shares for about ...
The bearish star cluster on the Starbucks (SBUX) chart that I highlighted last week preceded price action this...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.