Alcoa inc. stock symbol AA is one of the stocks that makes up my portfolio. Although it has not being doing well for the past two years since it dropped from $48 a share, I still think Alcoa is a great company. Today it is trading at a range of $11 to $17.60 a share(it’s recent 52 week high). Alcoa “is engaged in the production and management of primary aluminum, fabricated aluminum, and alumina combined.source Although it has had it’s fair share of trouble due to the economic meltdown, I still have faith in the company.
Yesterday the stock was downgraded because it did not meet Analysts expectations. I often find myself disagreeing with Analysts on a lot of predictions after I do my research. But what do I know huh? My portfolio is only up by 24% on the year. Alcoa was downgraded from market perform to under perform. The terms speak for themselves but I am sure my audience here are not market savvy and if you are one of them, welcome because I am going to explain anything that may possibly confuse you. Market perform simply means the stock is going to do whatever the stock market does. If the market turns positive then the stock will turn positive with the market and if the market remains on the negative as it has been for the most part despite it’s occasional surges upwards, then the stock will shift with the market in that direction as well.
I am bullish on Alcoa’s shares because the company has been making a lot of positive changes. They have laid off and continue to lay off employees. By letting people go, they are restructuring, cutting costs and preparing for the future of the company. They have been creating partnerships and a lot of other key developments have been announced:
December 20
Alcoa Inc. Announces Partnership With Ma`aden To Develop Aluminum Complex In Saudi Arabia
December 20
Alcoa Inc. Announces Alcoa Wheels Contribute To Environmentally Friendly Coca-Cola Distribution Trucks In Belgium
November 17
Alcoa Inc. Announces Alumar Alumina Refinery Expansion Dedicated
November 5
Alcoa Inc. To Rebuild, Enhance Forging Press In Cleveland
These are just a few of the changes and additions the company has been making. You can find the complete list on Reuters UK.
Stock psychology
Just because a stock Analyst says something about a stock doesn’t mean it’s true. Well, unless that Analyst can see the future. I bet you a million dollars he/she can’t! However, some of their predictions have been accurate although a companies past performance does not necessary guarantee it’s future performance.
Comments on this entry are closed.