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The Big Money to Be Made in the Aluminium Sector
Miners and metal suppliers have had a tough year.
Share weakness reflects low commodity pricing, poor global prospects for basic materials and entire investment sectors that are simply out of favour just now. Many investors seem to prefer bonds and tech, if not plain old cash.
So what does the future hold for investors in basic materials? Can we identify any secrets to success? Can we get in ahead of the turning wheels of the business cycle?
In the past two years…aluminium pricing has been shaky on the best of days and weak on most others.
Today, let’s look at a ‘basic’ material supplier that has apparently found the bottom. Shares may be poised for a strong comeback – but beware on that last point, because you might have to wait a while.
The company I’m about to discuss is NOT a ‘buy’ just yet. But it definitely ought to be on your radar screen because of its importance to global industry and as a barometer for market sentiment.
A Very Useful, Versatile Metal…
The other day, I listened in on a conference call by Klaus Kleinfeld, CEO of Alcoa (AA.) The aluminium company’s shares trade at $8 – a four-year low – which is far down from the high of $18 about two years back. I followed Alcoa in the portfolio for my newsletter a few years ago, but sold out before the shares drifted into the current doldrums.
Read the rest of this article at Money Morning
