Alcoa (AA)
is not the easiest stock to follow or own. While Alcoa enjoys a solid
position on the cost curve for both bauxite and alumina and has made
progress with its aluminum costs, there are a lot of moving parts to the
model that management has little or no control over, including the
hard-to-predict behavior of the Chinese government toward its smelters.
Longer term, I'd like to see Alcoa pursue an upstream merger to further
consolidate the industry and create more cost-cutting opportunities, but
in the meantime, the outlook for aluminum in 2018 should some upside.
Continue here:
Lackluster Earnings And Guidance Create An Opportunity In Alcoa
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