| View previous topic :: View next topic |
| Author |
Alcoa |
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 7530
Location: Sunny California
|
 Posted: Tue Jul 11, 2006 7:59 am Post subject: Alcoa |
 |
|
Always one to disappoint AA, Alcoa, recorded its highest quarterly profit in the company's more than 115-year history. At 755million shy of a double is too shy for market.
Sees weaker 3rd on seasonals, autos (hello GM) |
|
| Back to top |
|
 |
| Author |
Alcoa Replies |
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 7530
Location: Sunny California
|
|
| Back to top |
|
|
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 7530
Location: Sunny California
|
|
| Back to top |
|
|
rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 7530
Location: Sunny California
|
| Posted: Wed Jun 11, 2008 10:45 am Post subject: |
|
|
...And the model of recycling--which exposed just how limited recycling was. Their new plant on the new dam in bleak and barren eastern iceland should set a model for aluminium smelting. If only they could get that nat gas one in Nigeria to work instead of flaring to air.
_________________
Today is the Tomorrow you worried about Yesterday! |
|
| Back to top |
|
|
Odysseus
Senior Poster
Joined: 14 Feb 2008
Posts: 103
Location: Dallas/Moscow
|
| Posted: Wed Jun 11, 2008 7:34 am Post subject: |
|
|
I have always wondered why aluminum companies were followed by mining analysts. Aluminum companies should be valued like petroleum refiners or chemical companies. The fact that the end product is metallic in no way suggests that they 'mine' aluminum. It's simply an energy intensive processed product not unlike cement.
Alcoa has always been a somewhat disappointing company. At best, it is an electricity proxy. You don't want to know how expensive it is to shutdown a potline.
I'm not suggesting that they can't or will not be bought out. If they are taken out, short the poor acquirer. Some I-Bank deal makers are probably shopping this idea to SWF's. If they can find a sucker, it will rival DuPont's takeover of Conoco to ensure that they won't have a feedstock problem.
_________________
Psychic with Alzheimers. I can predict what I will forget. |
|
| Back to top |
|
|
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 7642
Location: Houston, Texas & Los Angeles, California
|
| Posted: Wed Jun 11, 2008 1:01 am Post subject: |
|
|
Aloca: Last man standing?
http://www.smartmoney.com/barrons/index.cfm?story=20080609-alcoa-stock&afl=yahoo
| Quote: | At year-end 2002, Alcoa was the biggest miner, ranked by market value. At $33 billion now, its market capitalization doesn't crack the top 10. Australia's BHP is tops at $225 billion and it could hit $400 billion if its hostile takeover bid for No. 3 Rio Tinto succeeds.
Several mining giants, including Xstrata, have expressed interest in expanding into aluminum, and Alcoa is the only sizable independent Western aluminum company left, following Rio Tinto's $43 billion purchase of Canada's Alcan last year. Worldwide demand for aluminum is rising 6% annually, powered by Asia's expanding economies; China alone consumes 37% of global output.
Aluminum prices, sleepy in recent years, are up 20% in 2008, to $1.30 a pound. Prices could go even higher — perhaps hitting $2 by early 2009 — thanks to tightening supplies of bauxite, the key raw material for aluminum production, and rising costs for electricity, which is critical to making the metal.
Alcoa now is valued at a reasonable 13 times projected 2008 profits of $3 a share and 10 times estimated 2009 profits of $3.80. John Hill, a mining analyst at Citigroup, sees aluminum averaging $2 a pound in 2009, boosting Alcoa's profits to $4.79 a share. Hill has a price target of 50 on the shares. In a takeover, Alcoa might fetch $60, based on its scarcity value and Alcan's deal price.
Alcoa's managers, led by Chairman Alain Belda and new CEO Klaus Kleinfeld, have shown little interest in selling. A hostile offer would be difficult because Alcoa is incorporated in Pennsylvania, whose laws favor targets of unfriendly offers. Skeptics note that there have been periodic takeover rumors, but nothing has materialized. |
|
|
| Back to top |
|
|
Please log in to view without the ad banners |
|
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
Powered by phpBB
|
FAQ
Search
Memberlist
Usergroups
Statistics
Register
Profile
Log in to check your private messages
Log in
