Expectations have been lowered so much heading into the earnings season, that any results that meet or beat them will give a boost to the market, as the quarterly earnings of Alcoa (NYSE: AA) did on Tuesday. The Dow closed at 13,390.51, up 61.66, or 0.46 percent. The S&P 500 and Nasdaq also closed in positive territory on Wednesday.
Investors are looking to revenue as one of the key indicators of the economic health for the fourth quarter, and Alcoa outperformed in that regard, which the market responded to in a soothing manner. If there is more good news from important companies, the market could jump to significant levels because the bar has been set so low.
There is no doubt the next weeks will experience a lot of ups and downs as investors appear to be trading on news at this time, rather than the overall health of the economy and individual company performance.
So when some companies report better-than-expected results, the overall market is benefiting from it. That's nothing new in and of itself, but it seems to be more intertwined than usual.
Also important is the outlook the companies of give heading into 2013. For Alcoa, the assertion that they see global demand for aluminum rising in 2013 helped to create the positive atmosphere that pushed the markets up overall.
Since expectations are so low, even some average performances could have a positive effect on markets, which could move them up to levels not reflecting the reality of the situation.
The bottom line is markets will probably perform better than the gloomy fog recently surrounding it has signaled, although it could set things up for a plunge after the earnings season is over and investors digest the news.
Showing posts with label Alcoa. Show all posts
Showing posts with label Alcoa. Show all posts
Wednesday, January 9, 2013
Tuesday, October 9, 2012
Alcoa (AA) Earnings, Revenue Plummet YOY
Earnings and revenue for aluminum giant Alcoa (AA) plunged from the same quarter last year, suffering a net loss of $143 million, with revenue falling from $6.42 billion last year to $5.83 billion this year. Earnings dropped from a profit of $172 million last year to a loss of $143 million this year.
I'm not sure why the headlines are screaming about the company meeting analysts' expectations, as the expectations were so low it would have been hard to lose in that environment.
Analysts had been looking for the company to generate revenue of $5.54 billion, and for earnings to come in even with last year's numbers.
CEO Klaus Kleinfeld continues to beat the drum about aluminum demand going to double sometime between 2010 and 2020, but things will have to change drastically for that to happen in the years ahead.
Of course there's little place to go up for the price, so if there ever is the beginnings of a real economic recovery, aluminum prices could shoot up, but there are far too many variables and questions concerning the global economy to be able to even suggest that is going to happen in the near future.
Again, I'm not sure how these dismal numbers can be called a beat, other than analysts lowered their estimations so much that it was inevitable that Alcoa would surpass them. But at least they were able to. Anything less would have been an even greater disaster for the struggling company.
Some of the segments Kleinfeld says grew were in the automotive business in the United States, as well as the aerospace unit.
Alcoa closed at $9.13, up by a penny, or 0.11 percent. In after hours trading the company was down $0.10.
Tuesday, September 18, 2012
Alcoa (AA) (GOLD) (MPC) (PSX) (RS) (SCHN) (STLD) Downgraded
Alcoa Inc. (AA), Randgold Resources Ltd. (GOLD), Marathon Petroleum (MPC), Phillips 66 (PSX), Reliance Steel & Aluminum (RS), Schnitzer Steel (SCHN) and Steel Dynamics, Inc. (STLD) were downgraded by analysts.
Jefferies Group (JEF) downgraded Alcoa Inc. (AA) from a "Buy" rating to a "Hold" rating. They have a price target of $11.00 on the company.
Stifel Nicolaus downgraded Randgold Resources Ltd. (GOLD) from a "Buy" rating to a "Hold" rating.
Credit Suisse downgraded Marathon Petroleum (MPC) from an "Outperform" rating to a "Neutral" rating. They have a price target of $63.00 on the company.
Credit Suisse downgraded Phillips 66 (PSX) from an "Outperform" rating to a "Neutral" rating. They have a price target of $46.00 on the company.
Jefferies Group downgraded Reliance Steel & Aluminum (RS) from a "Buy" rating to a "Hold" rating. They have a price target of $62.00 on the company.
Jefferies Group downgraded Schnitzer Steel (SCHN) from a "Buy" rating to a "Hold" rating.
Jefferies Group downgraded Steel Dynamics, Inc. (STLD) from a "Buy" rating to a "Hold" rating.
Jefferies Group (JEF) downgraded Alcoa Inc. (AA) from a "Buy" rating to a "Hold" rating. They have a price target of $11.00 on the company.
Stifel Nicolaus downgraded Randgold Resources Ltd. (GOLD) from a "Buy" rating to a "Hold" rating.
Credit Suisse downgraded Marathon Petroleum (MPC) from an "Outperform" rating to a "Neutral" rating. They have a price target of $63.00 on the company.
Credit Suisse downgraded Phillips 66 (PSX) from an "Outperform" rating to a "Neutral" rating. They have a price target of $46.00 on the company.
Jefferies Group downgraded Reliance Steel & Aluminum (RS) from a "Buy" rating to a "Hold" rating. They have a price target of $62.00 on the company.
Jefferies Group downgraded Schnitzer Steel (SCHN) from a "Buy" rating to a "Hold" rating.
Jefferies Group downgraded Steel Dynamics, Inc. (STLD) from a "Buy" rating to a "Hold" rating.
Monday, January 9, 2012
Alcoa (AA) (KMP) (DPM) (MOS) (BEN) (KWK) Ratings, Price Targets
Alcoa Inc. (NYSE: AA), Kinder Morgan Energy Partners LP (NYSE: KMP), DCP Midstream Partners, LP (NYSE: DPM), The Mosaic Company (NYSE: MOS), Franklin Resources, Inc. (NYSE: BEN) and Quicksilver Resources Inc. (NYSE: KWK) ratings and price targets.
Alcoa Inc. (AA) had its “Buy” rating reiterated by Dahlman Rose.
Kinder Morgan Energy Partners LP (KMP) was downgraded by Bank of America (NYSE:BAC) to a “Neutral” rating.
DCP Midstream Partners, LP (DPM) was downgraded by Bank of America to a “Neutral” rating.
The Mosaic Company (MOS) had its price target lowered by Morgan Stanley (NYSE:MS) to $77.00.
Franklin Resources, Inc. (BEN) had its price target lowered by Barclays Capital (NYSE:BCS) from $135.00 to $124.00. They have an “Overweight” rating on the company.
Quicksilver Resources Inc. (KWK) had its “Buy” rating reiterated by Bank of America.
Alcoa Inc. (AA) had its “Buy” rating reiterated by Dahlman Rose.
Kinder Morgan Energy Partners LP (KMP) was downgraded by Bank of America (NYSE:BAC) to a “Neutral” rating.
DCP Midstream Partners, LP (DPM) was downgraded by Bank of America to a “Neutral” rating.
The Mosaic Company (MOS) had its price target lowered by Morgan Stanley (NYSE:MS) to $77.00.
Franklin Resources, Inc. (BEN) had its price target lowered by Barclays Capital (NYSE:BCS) from $135.00 to $124.00. They have an “Overweight” rating on the company.
Quicksilver Resources Inc. (KWK) had its “Buy” rating reiterated by Bank of America.
Thursday, October 13, 2011
Alcoa (AA) (CHRW) (FISV) (ONNN) Ratings Holds and Changes
Alcoa Inc. (NYSE: AA), C.H. Robinson Worldwide, Inc. (NASDAQ: CHRW), Fiserv, Inc. (NASDAQ: FISV) and ON Semiconductor (NASDAQ: ONNN) ratings reiterations and downgrades.
Morgan Stanley (NYSE:MS) reiterated its "Overweight" rating on Alcoa (AA).
BB&T (NYSE:BBT) downgraded C.H. Robinson Worldwide, Inc. (CHRW) from a “Buy” rating to a “Hold” rating.
Sterne Agee reiterated its "Buy" rating on Fiserv, Inc. (FISV).
JPMorgan Chase & Co. (NYSE:JPM) reiterated its "Overweight" rating on ON Semiconductor (ONNN). They have a price target of $9.00 on the company.
Morgan Stanley (NYSE:MS) reiterated its "Overweight" rating on Alcoa (AA).
BB&T (NYSE:BBT) downgraded C.H. Robinson Worldwide, Inc. (CHRW) from a “Buy” rating to a “Hold” rating.
Sterne Agee reiterated its "Buy" rating on Fiserv, Inc. (FISV).
JPMorgan Chase & Co. (NYSE:JPM) reiterated its "Overweight" rating on ON Semiconductor (ONNN). They have a price target of $9.00 on the company.
Wednesday, October 12, 2011
Apple (AAPL) (AA) (PWER) (NSR) (NSC) (CHRW) Ratings, PTs
Apple, Inc (NASDAQ: AAPL), Alcoa Inc. (NYSE: AA), Power-One, Inc. (NASDAQ: PWER), Neustar, Inc (NYSE: NSR), Norfolk Southern Corp. (NYSE: NSC) and C.H. Robinson Worldwide, Inc. (NASDAQ: CHRW) ratings and price targets.
Sterne Agee reiterated its "Buy" rating on Apple, Inc. (AAPL). They have a price target of $500.00 on the company.
Power-One, Inc. (PWER) had its price target lowered by Piper Jaffray (NYSE:PJC) to $8.00.
Neustar, Inc. (NSR) had its price target raised by Wedbush to $36.00.
Alcoa Inc. (AA) had its price target lowered by Jefferies (NYSE:JEF) to $14.00. They have a “Buy” rating on the company.
Norfolk Southern Corp. (NSC) was downgraded by Deutsche Bank (NYSE:DB) from a “Buy” rating to a “Hold” rating. They have a price target of $73.00 on the company.
C.H. Robinson Worldwide, Inc. (CHRW) was downgraded by Desjardins from a “Buy” rating to a “Hold” rating. They cited valuation as the catalyst behind the call.
Sterne Agee reiterated its "Buy" rating on Apple, Inc. (AAPL). They have a price target of $500.00 on the company.
Power-One, Inc. (PWER) had its price target lowered by Piper Jaffray (NYSE:PJC) to $8.00.
Neustar, Inc. (NSR) had its price target raised by Wedbush to $36.00.
Alcoa Inc. (AA) had its price target lowered by Jefferies (NYSE:JEF) to $14.00. They have a “Buy” rating on the company.
Norfolk Southern Corp. (NSC) was downgraded by Deutsche Bank (NYSE:DB) from a “Buy” rating to a “Hold” rating. They have a price target of $73.00 on the company.
C.H. Robinson Worldwide, Inc. (CHRW) was downgraded by Desjardins from a “Buy” rating to a “Hold” rating. They cited valuation as the catalyst behind the call.
Friday, November 5, 2010
Alcoa (NYSE:AA), Century (NASDAQ:CENX), Kaiser (NASDAQ:KALU), Noranda (NYSE:NOR) Soar on Fed QE
Alcoa Inc. (NYSE:AA), Century Aluminum Company (NASDAQ:CENX), Kaiser Aluminum Corp. (NASDAQ:KALU), Noranda Aluminum Holding Corporation (NYSE:NOR) soared on the inflationary steps taken by the Federal Reserve, which will dilute the U.S. dollar even more via its $600 billion quantitative easing fiasco.
Commodities, which are denominated, for the most part, in U.S. dollars, will benefit strongly from this, and aluminum companies mentioned above, and others, will partake in that benefit.
Aluminum prices rose to their highest level since April, reaching about $2,450 a ton.
Higher commodity prices, in whatever segment they're in, can overcome a lot of resistance and operational problems, and that is the case with aluminum and aluminum producers, who are poised to move up in share price based on the expected and ongoing rise in aluminum prices.
Commodities, which are denominated, for the most part, in U.S. dollars, will benefit strongly from this, and aluminum companies mentioned above, and others, will partake in that benefit.
Aluminum prices rose to their highest level since April, reaching about $2,450 a ton.
Higher commodity prices, in whatever segment they're in, can overcome a lot of resistance and operational problems, and that is the case with aluminum and aluminum producers, who are poised to move up in share price based on the expected and ongoing rise in aluminum prices.
Tuesday, November 2, 2010
Freeport (NYSE:FCX), Alcoa (NYSE:AA), BHP (NYSE:BHP) Follow Commodity Prices Up
Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), Alcoa Inc. (NYSE:AA), BHP Billiton (NYSE:BHP) are all trading higher today as the U.S. dollar plunged in value in anticipation of the decision by the Federal Reserve to inflate again, or in other words, implement more quantitative easing through buying more government debt.
Commodities were up and the miners mentioned above, as well as others followed.
Gold prices, while up moderately today, are taking a breather before the resumption of their upward climb, as the implementations of more printing of money will drive gold prices up on inflation concerns, as well as a plethora of other reasons.
Many gold miners are strongly positioned to take advantage of this, as well as other commodity-based corporations, which will be positively impacted by the increased prices of commodities.
Something to look for in any of the commodity companies will be those with strong cost-control measures in place, as their margins and earnings should soar during this time of inflating from the Federal Reserve, which most believe will be conducted incrementally over a period of time, keeping the price of commodities up for the duration, and probably longer, as demand is still a factor, even with the additional help of higher prices.
For BHP, shareholders and investors are awaiting the decision tomorrow by Canada on whether or not to allow the deal to go forward, which if is allowed, could dramatically push the share price of BHP up when also including the announced actions of the Federal Reserve.
Commodities were up and the miners mentioned above, as well as others followed.
Gold prices, while up moderately today, are taking a breather before the resumption of their upward climb, as the implementations of more printing of money will drive gold prices up on inflation concerns, as well as a plethora of other reasons.
Many gold miners are strongly positioned to take advantage of this, as well as other commodity-based corporations, which will be positively impacted by the increased prices of commodities.
Something to look for in any of the commodity companies will be those with strong cost-control measures in place, as their margins and earnings should soar during this time of inflating from the Federal Reserve, which most believe will be conducted incrementally over a period of time, keeping the price of commodities up for the duration, and probably longer, as demand is still a factor, even with the additional help of higher prices.
For BHP, shareholders and investors are awaiting the decision tomorrow by Canada on whether or not to allow the deal to go forward, which if is allowed, could dramatically push the share price of BHP up when also including the announced actions of the Federal Reserve.
Monday, November 1, 2010
Alcoa (NYSE:AA), Google (Nasdaq:GOOG) , Coca-Cola (NYSE:KO) Call For More Government Spending
Evidently having learned nothing from the inept government and Federal Reserve, leaders of Alcoa (NYSE:AA), Google (Nasdaq:GOOG) and Coca-Cola (NYSE:KO) have all called for even more spending as a solution to the difficult job market, as if more and larger government is the answer to the problem, rather than being a large part of the problem.
The usual idea of throwing more money at education and innovation is looked upon as the answer. The problem is the quality and focus of education, not a lack of money. For innovation, what they mean there is research and development, which has absolutely nothing to do with the purpose of government or even the ability of the government to determine what is needed best.
These companies need to start looking for market solutions and the creativity that has made America so prosperous, not going with their hat in hand begging for government handouts, which means more deficits or higher taxes.
The trillions already spent show there is no correlation between government spending and economic success. Most times the money is wrongly used and the result is redistribution to very poor projects, which ends up with money spent and nothing to show for it.
Alcoa's CEO Klaus Kleinfeld rightly noted, “America and the American dream are still very much alive. The foundation is there. Currently we have a scientific revolution going on like we have not seen before.”
His problem is he doesn't see his schizophrenia in relationship to how that has anything to do with entrepreneurship and the government.
There is no need to throw taxpayers' money at the private sector, that's why it's called the private sector. Great companies like Wal-Mart rise above the need for government and develop their own answers to challenges and needs. That's what has made America economically great, not the misguided use of funds to prop up university research programs, which is what this is really talking about.
The usual idea of throwing more money at education and innovation is looked upon as the answer. The problem is the quality and focus of education, not a lack of money. For innovation, what they mean there is research and development, which has absolutely nothing to do with the purpose of government or even the ability of the government to determine what is needed best.
These companies need to start looking for market solutions and the creativity that has made America so prosperous, not going with their hat in hand begging for government handouts, which means more deficits or higher taxes.
The trillions already spent show there is no correlation between government spending and economic success. Most times the money is wrongly used and the result is redistribution to very poor projects, which ends up with money spent and nothing to show for it.
Alcoa's CEO Klaus Kleinfeld rightly noted, “America and the American dream are still very much alive. The foundation is there. Currently we have a scientific revolution going on like we have not seen before.”
His problem is he doesn't see his schizophrenia in relationship to how that has anything to do with entrepreneurship and the government.
There is no need to throw taxpayers' money at the private sector, that's why it's called the private sector. Great companies like Wal-Mart rise above the need for government and develop their own answers to challenges and needs. That's what has made America economically great, not the misguided use of funds to prop up university research programs, which is what this is really talking about.
Friday, October 29, 2010
Alcoa (NYSE:AA) Making Wheels for Extraordinary Ferrari 458 Italia
Alcoa (NYSE:AA) has landed the contract to produce the wheels for the Ferrari 458 Italia via their Alcoa Auto Wheels unit in Cleveland, Ohio.
The Ohio plant employs 2,800 workers and develops products for defense, automotive, and commercial vehicles.
As usual with aluminum products, the new wheels will have a lower weight, while having a diameter of 20 inches. The 20 inch diameter is required in order for the larger carbon-ceramic brake discs accompanying the design.
The front wheels will weigh in at only 22.8 pounds and the rear wheels at 25.3 pounds, helping to reduce how much the car weighs, hopefully without sacrificing safety.
Victor Marquez, Vice President and General Manager, Alcoa Auto Wheels, said, “The weight saving possible with Alcoa’s forged aluminum wheels helps to achieve the sharp handling and steering response for which Ferrari is famous.
“As well as styling freedom, Alcoa’s forged wheels offer a quick-to-market, cost-effective weight reduction.”
Wednesday, October 27, 2010
Alcoa (NYSE:AA) Down on Mixed Economic Data
Ongoing release of mixed economic data has companies like Alcoa (NYSE:AA) being left with little or no direction, although investors and shareholders are starting to see and believe there will be a long stretch of economic weakness infecting the sector, even with estimated price and demand increases for aluminum.
The latest government data show business investment is expected to slow down, while the anticipated resumption of quantitative easing, which is strongly opposed in many quarters, will be incremental rather than all at one time, probably to lessen the opposition to the practice, which would grab hold of huge numbers and blast them if done all at once.
Also pushing down the share price of Alcoa is the strengthening of the U.S. dollar, which also put downward pressure on metal prices in general.
The aluminum giant dropped to $12.62, losing $0.25, or 1.94 percent as of 12:39 PM EDT.
The latest government data show business investment is expected to slow down, while the anticipated resumption of quantitative easing, which is strongly opposed in many quarters, will be incremental rather than all at one time, probably to lessen the opposition to the practice, which would grab hold of huge numbers and blast them if done all at once.
Also pushing down the share price of Alcoa is the strengthening of the U.S. dollar, which also put downward pressure on metal prices in general.
The aluminum giant dropped to $12.62, losing $0.25, or 1.94 percent as of 12:39 PM EDT.
Tuesday, October 26, 2010
Alcoa (NYSE:AA) Appoints New VP Finance for North American Rolled Products
Alcoa (NYSE:AA) has named Matthew Garth as the new vice president of finance for North American Rolled Products.
Replacing Garth in his former role as director of investor relations will be Roy Harvey, who was Alcoa's director of corporate treasury.
Alcoa Chief Financial Officer Chuck McLane in a statement: “Matt and Roy bring solid financial experience and talent to their roles. Matt’s strategic background and capital market experience will be a valuable addition to Rolled Products, and Roy’s unique international operational experience will be an asset in working with the financial analyst community.”
The rolled products group entails the North American Mill Products and Rigid Packaging operations unit.
Rigid Packaging has plants in Alcoa, Tennessee and Warrick, Indiana. Mill Products has plants in Davenport, Iowa and Lancaster, Pennsylvania.
Replacing Garth in his former role as director of investor relations will be Roy Harvey, who was Alcoa's director of corporate treasury.
Alcoa Chief Financial Officer Chuck McLane in a statement: “Matt and Roy bring solid financial experience and talent to their roles. Matt’s strategic background and capital market experience will be a valuable addition to Rolled Products, and Roy’s unique international operational experience will be an asset in working with the financial analyst community.”
The rolled products group entails the North American Mill Products and Rigid Packaging operations unit.
Rigid Packaging has plants in Alcoa, Tennessee and Warrick, Indiana. Mill Products has plants in Davenport, Iowa and Lancaster, Pennsylvania.
Friday, October 22, 2010
Alcoa (NYSE:AA), Rosnano Corporation Ready to Launch Joint Projects
Alcoa (NYSE:AA) and Rosnano Corporation are reportedly close to launching several new projects, with several high-potential ventures already in the pipeline, according to Rosnano CEO Anatoly Chubais.
Although Chubais wouldn't elaborate on the projects, it is known the two companies are collaborating on studying the use of nanotechnologies in oil and gas, and new ways to transmit energy, as well as new lighting systems.
Alcoa hasn't commented much on it, but there have been several strategies they seem to be employing that are outside its core business, possibly to move out of the cyclical nature of their primary aluminum business.
EVA Dimensions upgraded Alcoa from "Underweight" to "Hold."
The aluminum producer closed Thursday at $12.78, losing $0.17, or 1.31 percent.
Although Chubais wouldn't elaborate on the projects, it is known the two companies are collaborating on studying the use of nanotechnologies in oil and gas, and new ways to transmit energy, as well as new lighting systems.
Alcoa hasn't commented much on it, but there have been several strategies they seem to be employing that are outside its core business, possibly to move out of the cyclical nature of their primary aluminum business.
EVA Dimensions upgraded Alcoa from "Underweight" to "Hold."
The aluminum producer closed Thursday at $12.78, losing $0.17, or 1.31 percent.
Thursday, October 21, 2010
Alcoa (NYSE:AA) Sees Aluminum Demand at 6 Percent over Next Decade
Alcoa (NYSE:AA) says they see demand for aluminum growing at a 6 percent clip over the next 10 years, and Rio Tinto (NYSE:RIO), via their Alcan unit, estimates aluminum growing at 5.3 percent over the next decade.
Rio said at the pace of their aluminum demand projections, aluminum production will have to grow by about 66 percent to meet the growing demand.
Alcan sees supply plunging by 27 million metric tons annually, as measured against demand, if new smelters aren't brought online by 2020.
For Alcoa, over the next year the believe aluminum consumption will increase by about 13 percent.
There have been mixed views on aluminum supply and demand, as some commentators and analysts have said they think aluminum supply will be ample going forward.
Much will depend, as with most things at this time, one whether or not the global economy comes out of the recession, especially the western world.
But even if the West doesn't, demand from Brazil, Russia, India and China will drive the demand side of the aluminum equation.
Another unknown is how much aluminum ETFs will factor in. As the first ones are being developed now, and a new aluminum market based on physical storage is emerging, which is unknown as to how much that will affect aluminum demand.
Rio said at the pace of their aluminum demand projections, aluminum production will have to grow by about 66 percent to meet the growing demand.
Alcan sees supply plunging by 27 million metric tons annually, as measured against demand, if new smelters aren't brought online by 2020.
For Alcoa, over the next year the believe aluminum consumption will increase by about 13 percent.
There have been mixed views on aluminum supply and demand, as some commentators and analysts have said they think aluminum supply will be ample going forward.
Much will depend, as with most things at this time, one whether or not the global economy comes out of the recession, especially the western world.
But even if the West doesn't, demand from Brazil, Russia, India and China will drive the demand side of the aluminum equation.
Another unknown is how much aluminum ETFs will factor in. As the first ones are being developed now, and a new aluminum market based on physical storage is emerging, which is unknown as to how much that will affect aluminum demand.
Tuesday, October 19, 2010
BHP (NYSE:BHP), Teck (NYSE:TCK), Freeport (NYSE:FCX) and Rio Tinto (NYSE:RIO) Will Soar on Quantitative Easing
With the Federal Reserve poised to inflate via quantitative easing, a number of commodities will surge in price, which will strongly benefit diversified miners like BHP Billiton (NYSE:BHP), Teck Resources (NYSE:TCK), Freeport McMoran (NYSE:FCX) and Rio Tinto (NYSE:RIO).
According to UBS (NYSE:UBS), some of their top commodity picks include gold, copper, palladium, iron ore, thermal coal and zinc. They added they believe it's a "game changer" for commodities.
Talking on global capital flows, UBS said that should strengthen "credit creation in emerging markets." The giant bank concluded, "We believe that QE2 will prolong the bull market in commodities."
UBS' top pick in the commodity sector is palladium, which they see making significant gains through 2015.
In what could be troubling news for aluminum producers like Alcoa (NYSE:AA), UBS sees aluminum and nickel, among other commodities whose supply has little constraint upon them as being less desirable and affected by quantitative easing.
Gold of course will continue to perform strongly for some time to come. In that space, besides companies mentioned above, they like gold mining giant Barrick Gold (NYSE:ABX).
UBS said they like gold mining stocks over ownership of physical gold.
According to UBS (NYSE:UBS), some of their top commodity picks include gold, copper, palladium, iron ore, thermal coal and zinc. They added they believe it's a "game changer" for commodities.
Talking on global capital flows, UBS said that should strengthen "credit creation in emerging markets." The giant bank concluded, "We believe that QE2 will prolong the bull market in commodities."
UBS' top pick in the commodity sector is palladium, which they see making significant gains through 2015.
In what could be troubling news for aluminum producers like Alcoa (NYSE:AA), UBS sees aluminum and nickel, among other commodities whose supply has little constraint upon them as being less desirable and affected by quantitative easing.
Gold of course will continue to perform strongly for some time to come. In that space, besides companies mentioned above, they like gold mining giant Barrick Gold (NYSE:ABX).
UBS said they like gold mining stocks over ownership of physical gold.
Alcoa (NYSE:AA) CEO Klaus Kleinfeld on Doing Business in Russia
In a meeting with Russian Prime Minister Vladimir Putin, potential investors in the country, including Alcoa (NYSE:AA) CEO Klaus Kleinfeld let Putin know what their major concerns were concerning doing business in the country.
While differentiating between different regions of the country, Kleinfeld identified the four major areas that need to be addressed:
“Obviously there’s different stories to different regions but there’s a theme of basically four major factors that could potentially be released. Number one is inadequate training of the workforce. Number two, it's difficulties for accessing financing. Number three, it's high levels of corruption. And number four it's unfair competition from the grey market.”
While acknowledging the challenges, Putin did say there have been improvements, and he was committed to moving as quickly as possible to make things better.
He said, “The Russian government has a strong incentive to quickly improve investor sentiment. It has an extensive program of privatizations to get away – with as many as 20 of the country's biggest state run companies marked for possible sale.”
The goal is to raise up to $50 billion over the next five years. To be successful, the challenges will have to be dealt with as soon as possible.
While differentiating between different regions of the country, Kleinfeld identified the four major areas that need to be addressed:
“Obviously there’s different stories to different regions but there’s a theme of basically four major factors that could potentially be released. Number one is inadequate training of the workforce. Number two, it's difficulties for accessing financing. Number three, it's high levels of corruption. And number four it's unfair competition from the grey market.”
While acknowledging the challenges, Putin did say there have been improvements, and he was committed to moving as quickly as possible to make things better.
He said, “The Russian government has a strong incentive to quickly improve investor sentiment. It has an extensive program of privatizations to get away – with as many as 20 of the country's biggest state run companies marked for possible sale.”
The goal is to raise up to $50 billion over the next five years. To be successful, the challenges will have to be dealt with as soon as possible.
Wednesday, October 13, 2010
Alcoa (NYSE:AA) Continues Climb on China Commodity Imports
Dow movers Alcoa (NYSE:AA) and Caterpillar (NYSE:CAT) moved higher today on news commodity imports to China were higher than expects, with China's trade surplus dropping to a five-month low of $16.88 billion in September.
The Dow Jones Industrial Average and Standard & Poor's 500-stock index are both up today.
Alcoa rose to $13.38, gaining $0.18, or 1.36 percent at 1:14 PM EDT. Caterpillar increased to $80.95, gaining $1.61, or 2.03 percent.
The Dow Jones Industrial Average and Standard & Poor's 500-stock index are both up today.
Alcoa rose to $13.38, gaining $0.18, or 1.36 percent at 1:14 PM EDT. Caterpillar increased to $80.95, gaining $1.61, or 2.03 percent.
Monday, October 11, 2010
Alcoa (NYSE:AA) Helps Century (NASDAQ:CENX), Alumina (NYSE:AWC) Soar on Quarterly Results, Guidance
Although there are a lot of uncertainties remaining in the aluminum market, that didn't stop investors from pushing up the share prices of Alcoa Inc. (NYSE:AA), Alumina Limited (NYSE:AWC) and Century Aluminum Company (NASDAQ:CENX).
Alcoa beat revenue estimates and increased their aluminum demand outlook.
Alcoa closed the week at $12.89, gaining $0.69, or 5.66 percent on Friday. Century Aluminum ended the session at $13.99, rising $0.63, or 4.72 percent. Alumina surged $7.80, increasing $0.37, or 4.98 percent.
Among the top aluminum performers for the day was Noranda Aluminum Holding (NYSE:NOR), which rose to $10.08, gaining $0.89, or 9.68 percent.
Others in positive territory were Aluminum Corporation Of China Limited (NYSE:ACH). Reliance Steel and Aluminum (NYSE:RS) and Kaiser Aluminum (NASDAQ:KALU)
Aluminum Corporation closed at $24.79, rising $0.19, or 0.77 percent. Reliance finished the week at $43.89, gaining $1.44 on Friday, or 3.39 percent. Kaiser Aluminum ended the session at $44.38, an increase of $1.17, or 2.71 percent.
The market is starting to believe emerging markets can carry aluminum demand without much help from mature economies.
Alcoa beat revenue estimates and increased their aluminum demand outlook.
Alcoa closed the week at $12.89, gaining $0.69, or 5.66 percent on Friday. Century Aluminum ended the session at $13.99, rising $0.63, or 4.72 percent. Alumina surged $7.80, increasing $0.37, or 4.98 percent.
Among the top aluminum performers for the day was Noranda Aluminum Holding (NYSE:NOR), which rose to $10.08, gaining $0.89, or 9.68 percent.
Others in positive territory were Aluminum Corporation Of China Limited (NYSE:ACH). Reliance Steel and Aluminum (NYSE:RS) and Kaiser Aluminum (NASDAQ:KALU)
Aluminum Corporation closed at $24.79, rising $0.19, or 0.77 percent. Reliance finished the week at $43.89, gaining $1.44 on Friday, or 3.39 percent. Kaiser Aluminum ended the session at $44.38, an increase of $1.17, or 2.71 percent.
The market is starting to believe emerging markets can carry aluminum demand without much help from mature economies.
UBS (NYSE:UBS) Sees Alcoa (NYSE:AA) Downstream Stronger
UBS (NYSE:UBS) maintains a "Neutral" rating on aluminum giant Alcoa (NYSE:AA), saying they see their downstream as strong.
"We note there were several adjustments that may or may not have been included in consensus numbers. Nevertheless, we believe these results are slightly better than expected mostly due better performance in the midstream and downstream businesses. AA’s Q2 cash flow from operations before working capital was lower at $179M, but AA continued to generate positive FCF after working capital."
UBS also increased Alcoa's earnings in the full year 2010, raising estimates from $0.30 to $0.50; for full year 2011, from $0.80 to $1.02; and for full year 2012, increasing from $1.52 to $1.71.
Alcoa closed the week at $12.89, rising $0.69 on Friday, or 5.66 percent. UBS has a price target of $13.25 on the, up from $12.
"We note there were several adjustments that may or may not have been included in consensus numbers. Nevertheless, we believe these results are slightly better than expected mostly due better performance in the midstream and downstream businesses. AA’s Q2 cash flow from operations before working capital was lower at $179M, but AA continued to generate positive FCF after working capital."
UBS also increased Alcoa's earnings in the full year 2010, raising estimates from $0.30 to $0.50; for full year 2011, from $0.80 to $1.02; and for full year 2012, increasing from $1.52 to $1.71.
Alcoa closed the week at $12.89, rising $0.69 on Friday, or 5.66 percent. UBS has a price target of $13.25 on the, up from $12.
Friday, October 8, 2010
Citigroup (NYSE:C) Maintains "Buy" on Alcoa (NYSE:AA) JPMorgan (NYSE:JPM) Upgrades Them
The response to Alcoa (NYSE:AA) beating street estimates yesterday for the last quarter has resulted in the stock of the company rising almost 7 percent in early trading. Citigroup (NYSE:C) maintained their "Buy" on Alcoa and JPMorgan (NYSE:JPM) raised their rating on the aluminum giant.
Is the market response to Alcoa (NYSE:AA) too positive? It may be.
Earnings were still down 21 percent, and that has largely been ignored as the financial press is gushingly focusing only on the results that suit a positive story.
All that happened was the quarter wasn't as bad as expected for Alcoa.
Aluminum prices in the third quarter were down and the dollar was up, cutting into earnings for them.
Alcoa's estimate for global aluminum demand for 2010 was increased from 12 percent to 123 percent, citing emerging markets as the driver of that, saying “more and more people are moving into the middle class, driving demand in building and construction, transportation and packaging.”
Some believe the discounted share price of Alcoa is justified though, as they have to prove they can get earnings up as the price of aluminum rises. The last several years they haven't been able to do that.
Is the market response to Alcoa (NYSE:AA) too positive? It may be.
Earnings were still down 21 percent, and that has largely been ignored as the financial press is gushingly focusing only on the results that suit a positive story.
All that happened was the quarter wasn't as bad as expected for Alcoa.
Aluminum prices in the third quarter were down and the dollar was up, cutting into earnings for them.
Alcoa's estimate for global aluminum demand for 2010 was increased from 12 percent to 123 percent, citing emerging markets as the driver of that, saying “more and more people are moving into the middle class, driving demand in building and construction, transportation and packaging.”
Some believe the discounted share price of Alcoa is justified though, as they have to prove they can get earnings up as the price of aluminum rises. The last several years they haven't been able to do that.
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