Alcoa, Inc. (NYSE:AA)

Here's the video pitch:

http://www.fool.com/investing/general/2012/02/08/the-5-year-outlook-for-this-dow-stock-alcoa.aspx

Currently being punished by the market due to an oversupply of aluminum and slowing demand. But the economy will turn around eventually, and when it does there will be demand in automotive, commercial, and aerospace markets. Alcoa are well positioned to profit when demand returns and aluminum prices finally go up. I can live with the low share price now -- the chaps over at Value Line are predicting $20-30 per share by 2014-16. That's good enough for me.

Seriously undervalued with psr of .75 and pbk of .75. Building income and assets nicely

2012 10 Experts pick

Wil always be in Demand!!!

i use a lot of alum, aa has pricing power and there is demand, they have cleaned up lots of over head problems and this will be the year for them to make a new high ....

Low Price to Book ratio. Buy on Down Cycle and will pop up when economy turns up. Since it pays a dividend, it cost nothing to hold as interest rate is so low.

22.4% expected annual growth

charts say up. ! what do I look for? a breakout, within a rising channel.

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As the spread between Copper and Aluminum widen, Aluminum becomes a viable substitute. IR already has a plan to move away from Copper.
Buy.

Cheap, cheap, cheap.

It seems like it is knd of at a low point. Plus I just bought an old airstream. Aluminum is cool.

My top Dow Dog pick for 2012...It shouldn't take much to propel it ahead of the S&P...

siri aa pcs

Navellier Growth Stock of the Day, Sell recommendation. AA is traditionally the company that kicks off earnings season, and this quarter wasn’t any different. On January 9, the company announced a fouth-quarter loss of $193 million or $0.18 per share. This is in sharp contrast to last year's fourth-quarter earnings of $0.15 per share. The loss is disappointing, but the silver lining is AA's forward guidance. The company expects global aluminum demand to grow 7%. This was higher than industry estimates and that is what has the market so excited this morning. Growth in the aluminum market has investors hopeful for an improving global economy.

Yes, big problems persist in the global economy, and aluminum demand and prices remain weak as a result. However, Alcoa hasn’t seen the $9 level since spring 2009. Are the macroeconomic fears really worse now than in 2009?

If we can't invest in Gold, Silver or Copper because we have been priced out of the market, then the next logical place to go is aluminum. It is being used more and more in new and different ways. Just Auto-Fuel milage improvement should cause this to rise in the timeframe above.

Pros: Recovery lends itself to metals, price reduced due to European economics despite being Australian and immune from Europe, outpaces industry in profit margin, P/E<12, Trefis price nearly 80% above market value.

Cons: China economy slowing could hurt aluminum sales, dividend yield lower than competitors

This should be a big winner in the next 3-4 years with reasonable sustained profitability and growth exceeding that.