Lackluster Earnings And Guidance Create An Opportunity In Alcoa

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.

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Lackluster Earnings And Guidance Create An Opportunity In Alcoa