Jump to content

Alcoa


rb

Recommended Posts

I didn't want to start this thread in Investment Ideas because I didn't do a deep dive yet on this name so I can't provide much insight.

 

That being said I think it starts to look interesting here after taking a 50% dive off the 52 week high. While I don't think that the commodity parts of the business are that enticing, the Engineered Products division now makes up abut 1/4 of revenue. The Engineered Products division is similar stuff to PCP.

 

Since it's trading at book I don't think the price is very high.

Link to comment
Share on other sites

I like it but also need to dig in more.  The CEO has been very aggressively exiting the commodity side of the business and pursuing the higher value add engineered products. I don't remember his background offhand, but he's had success with similarly aggressive strategies in his past. The headline numbers for now are crap because of all the restructuring charges. Challenge is figuring out exactly what the economics are of the future business.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...