AA

Alcoa Inc.

Industrial/Transportation


Presented:01/15/2014
Price:$30.99
Cap:$11.10B
Current Price:$41.30
Cap:$10.67B

Presented

Date01/15/2014
Price$30.99
Market Cap$11.10B
Ent Value$20.92B
P/E Ratio69.48x
Book Value$30.24
Div Yield0.8%
Shares O/S356.65M
Ave Daily Vol8,441,550
Short Int11.04%

Current

Price$41.30
Market Cap$10.67B
Alcoa Inc. engages in the production and management of primary aluminum, fabricated aluminum, and alumina. The company operates in four segments: Alumina, Primary Metals, Global Rolled Products, and Engineered Products and Solutions. The Alumina segment engages in mining of bauxite, which is then refined into alumina. The Primary Metals segment produces aluminum. The Global Rolled Products segment engages in the production and sale of aluminum plate, sheet, and foil. The Engineered Products and Solutions segment produces and sells titanium, aluminum, and super alloy investment castings, forgings and fasteners, aluminum wheels, integrated aluminum structural systems, and architectural extrusions, as well as hard alloy extrusions. Its products are used in aircraft, automobiles, commercial transportation, packaging, building and construction, oil and gas, defense, consumer electronics, and industrial applications. The company has operations primarily in the United States, Australia, Spain, Brazil, the Netherlands, Norway, France, the Russian Federation, Hungary, Italy, the United Kingdom, China, and Germany. Alcoa Inc. was founded in 1888 and is based in New York, New York.

Please note, this stock split on 10/06/2016 at a ratio of 1/3. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $10.32.​

Highlights

The presenter is short shares of Alcoa (AA), and believes the world’s largest producer of aluminum (10% of global production) is caught in an extremely difficult situation due to a variety of factors, including massive oversupply of aluminum due to increasing Chinese capacity and production, industry inventory levels at 5x the highest levels seen in the past 30 years, a highly levered balance sheet, and rich valuation (P/E of 32x).

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Idea Discussion

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