Kaiser Aluminum Corp. (KALU)

This account tracks the performance of the investment firm Ruane, Cunniff, and Goldfarb - the investment manager of Sequoia Fund.

Asterism Output:
12.5/15.6
8.3/12.8

bottom feeding, I hope

If anyone survives this downturn, it will be basic materials suppliers. Kaiser will have problems on two fronts--automotive business is going to be tough, and aluminum production takes a ton of energy which isn't exactly cheap.

Yet, the shares already reflect that, and there is some upside in aluminum being lighter than steel (more components will be switched from steel to aluminum to improve fuel efficiency), and the aerospace business isn't going anywhere--too much military spending that no one will back away from in our new and dangerous world.

I feel confident that owning any aluminum producer with a P/E of 8 is a wise investment for the patient investor.

Increasing earnings and a P/E of less than 10. Trading near 52 week low. Signals a buy for me.

An aluminum manufacturer with no long term debt and profitable returns and cash flow. In a very volatile market with an ever declining American dollar this company seems solid. Add to that the Price/Book ratio being close to one and the earnings value, this company seems to have amazing potential.

I think the price might drop a bit in the short term (maybe mid-high 40s), but in the next year or so, I see it being a great pick!

Tough market given the mothballing of aircraft and the closing of truck plants.

June Top 10 Stockscouter pick

Maybe I am a simple man but I look for simple things: Significant insider buying at or above my price of entry. P/E ratio less than 15. No significant debt. And preferably a significant (greater than 5% of float) short interest to get a nice pop when they get squeezed. Then I buy and buy until the pop happens. Now of course being in a longterm growth industry like aerospace and defense is not too bad either. So far this has worked for me very well (i.e. buying natural gas companies up until January and starting to sell them now) so I will continue with this method.
Besides, this is a magic formula stock which means it is just too cheap.

The quarter was in line. The stock got beaten below the pre earnings runup. It should bounce back and give good mod growth for the next few years.

I'm forcasting the numbers regarding America's financial situation to be terrible in the summer. Therefore, I see investors itching to short all sectors duing business in the U.S. domestic market, including Kaiser. Kaiser, along with most other heavily domestic dependent stocks will ride the Dow down into the 11,000's this summer.

Ask CAPS to stop censoring user blogs.

With the new mergers, will the airliners look to upgrade their aging fleet?

This is one to keep your eye on.

I believe the comities bubble is not over yet so I am buying on this latest dip. There is still some more bad news coming, and the rich will want to hedge. There is still some downward momentum on the dollar. Banks are not done yet. I will jump ship on the next big dip.

This company has been around a long time. Can diversify if needed, they used to make airplanes.

The lightweight specialty aluminum made by KALU will be in high demand as Boeing and Airbus get ramped on production of their oft-delayed monster jets.

Needed a bargain pick in the materials sector, copper is just so hot right now...This company has great numbers, but I've had those before and lost my shirt. Long term should be a sure thing however. Aluminum is THEE metal for any construction material or part, and that's what China needs, and this company makes it...

Technicals are on the bottom and have turned up. This will be a hold. If it pops then it will be large.