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ALCOA (AA)Why Sell this Stock?
Company Description
Alcoa Inc. engages in the production and management of primary aluminum, fabricated aluminum, and alumina worldwide. It involves in the technology, mining, refining, smelting, fabricating, and recycling of aluminum.
Why was it bought?
Recent acquisitions of 2 aerospace fastener businesses
Leader in production & management of primary aluminum, fabricated aluminum, and alumina combined.
Company is not dependant upon other customer segments, thus relatively independent from many issues
Competition
Performance (in the past year)
MorningStar Opinion (3 of 5 Stars) “Alcoa is gradually reshuffling its portfolio to
focus more on the upstream bauxite mining and refinery business, and de-emphasize the downstream production business. Given the more attractive economics of the mining and alumina refining operations, we think the company is on track to improve its profitability over the long haul. However, the current economic environment is a tough one for the firm to execute on its long-term strategy.”
Yahoo Finance Opinion
1.0 = Strong Buy 5.0 = Sell Current Rating = 3 Target Price ≈ 13.00
Beta= 2.063 Stage DDM, Intrinsic Value= $28.90
Key Statistics
Recent News
Today, Alcoa names its new President Timothy Reyes.Could see a new image for the company
with fresh ideasHe has a concrete understanding of the
industry and looks to make changes to the company’s existing agenda
Refer to Article from Email/Print-off
SWOT Analysis
Strengths: Leading the Industry Weakness: Excessive amounts of
inventory, which means profits will be low—for the time being.
Opportunities: New President of the company
Threats: Economic Conditions– consumer spending
Recommendation Although this is one of our few Value Stocks, it is
reasonable to consider selling this stock considering its performances lately.
The ratings between sources show that the stock performance is relatively stagnant.
However, for the past few weeks, the stock price has been going up incrementally which posses the question– Sell Now or Later on?
OR should we reevaluate our Value Stock Screening?
