Aluminum Corp. of China Limited (ADR) (NYSE:ACH)

CAPS Rating: 3 out of 5

A joint stock limited company, with its subsidiaries is engaged in bauxite mining, alumina refining and aluminum smelting. Principal products are alumina and primary aluminum.

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Player Avatar dwelllewd (27.71) Submitted: 11/4/2008 6:42:34 AM : Underperform Start Price: $9.43 ACH Score: +86.77

ACH mines, refines, and then smelts to bring about their final product, aluminum. All together a very energy intensive ordeal. Unfortunately for ACH there is an energy squeeze in China (and will be for awhile, regardless of the price of coal, because the shortage is in infrastructure, not consumables). Which wouldn't be such a problem is ACH could pass the cost on, but the price of metals has plummeted, making the entire operation unprofitable. ACH is mothballing facillities. The prospects are not good.

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