Alumina Limited (ADR) (AWC)

.5

Caps...5 star from 4.

Like Alcoa but further depressed... it will be back. Close to China...

Screened based on high yield, mid-cap and good CAPS rating

As the international economy picks up, so will demand for aluminum and other raw materials.

The fundamentals on this company can't be beat. Low debt and positive earnings are hard to find in any sector these days. Asian manufacturing will still need aluminum.

Materials play outside the US gives two ways to hedge against a decline in the dollar, which is sure to come. Great dividend with excellent debt position.

This can be a somewhat confusing company at first glance. A quick glance at their income statement shows a 3 year loss from operations, but that is because most of their worth is in long term investments. That investment is a 40% interest in AWAC, which is a joint venture with Alcoa, who owns the other 60%. Historically they have been a dividend play, but because of the downturn in the world economy, and especially the current overcapacity of aluminum producers, they decided to forgo the dividend this time around. AWAC provides the feedstock (alumina) for the production of aluminum. AWAC has global positions in mining and smelter operations. The current price offers a good opportunity to buy in for good longer term profits on both stock price appreciation and for reinstated dividends. They are a conservative company and have taken steps to shore up their operations by raising additional capital and by curtailing the dividend. They are well positioned to wait out the recovery. They are profitable, though not as much as they previously were. In addition, they have a very strong balance sheet. Their equity is about three times their liabilities. I bought in at under $5.00 and will watch for dips in the price to increase my position. A good stock for investors with a longer term (2-3 year) horizon. Could return 75% to 100% on an annualized basis at their current price, when they return to historical valuations.They have been around for a long time, and have had a relationship with Alcoa for over 40 years. Think about the impact on the aluminum requirements when both "New GM" and "New Chrysler" get their production "re-ramped". It also looks like FORD is seeing at least a dim light at the end of the tunnel. JMO and worth exactly what I am charging for it. Worth taking a look at.

The pitch for this stock can be found on the Stinky Feet discussion board at http://boards.fool.com/Message.asp?mid=27337875 . Stop by and let us know what you think of this stock.

Aluminium is used when steel is expensive

Aluminum...*SIGH*

Aluminum. Used in almost everything. If you want an industrial stock, it's down now. I see it growing

Good operator

World shortage of AL

The aluminum market is coming up short. Production isn,t going to keep up with needs much longer. I expect a surge in the market and ADR is in a good position to jump right in with their Boxite reserves well in hand and ready to be the "Johnny on the spot" when the call comes in.

Trend shows unexciting steady long-term growth. Australian, with dividend. High volatility in '07. Bought into weakness in Jan. '08. Expect to see return to stable growth trend. Hold until volatility subsides (likely into '09), then reassess.

20% up in the last 5 days. Precious metals are a hot sector right now. Downside possibility because of recent decrease in income due to higher costs.

With reflation and the China put the world economy will need energy for our survival. Aluminum is light & strong. Everybody will want a light weight aluminum bike and think of the myriad of other energy saving app:s. There's a new world coming. People are getting smarter faster as we near the replacement of this present wicked system of things. Aluminun will lighten the load. Alumina,"AWC", is already 60% owned by Alcoa an easy takeover target. For quick and long term profits while it's under the radar, Crikey! Roger that.

Altman Z score below 1. Two stocks made this screen AWC and XTXI.

Aluminum is in ever increasing need. 2.5% dividend. PEG ~ 1