Noranda Aluminum Holding Corporation Common Stock
The aluminum industry has long been plagued by an overcapacity issue, with major players in the industry failing to attract enough demand to meet the supply they create. As a result, aluminum prices have not moved in a favorable (upwards) direction for the industry.
A surprise call
Metals and mining is an important sector to watch during earnings season. In fact, the earnings season often kicks off with Alcoa (NYSE: AA), the aluminum player, which was once considered to be the bellwether for the US stock market. That changed in 2011, when S&P 500 index posted a gain of 3% but Alcoa’s stock fell by more than 40%.
Alcoa has been surprising its investors in more »
The aluminum industry has been going through a “prisoner’s dilemma” just like the US steel industry. Industry output has exceeded demand and therefore margins have been squeezed due to massive price cuts. Not a single player is willing to take the first step of reducing its production capacity. This has led to unfavorable returns for aluminum investors:
Noranda Aluminum (NYSE: NOR)
Noranda’s sales volumes are expected to improve more »
Aluminum, which is used in everything from cans to cars or planes, has a growing global demand that increases hand in hand with the growth experienced by emerging markets like China and Brazil. As a matter of fact, Alcoa (NYSE: AA), the American aluminum champion that just reported earnings, expects global demand to grow by 7% in 2013 from 2012´s 6% (which has been the average growth rate for more »
Alcoa (NYSE: AA), the largest producer of primary aluminum, fabricated aluminum and alumina, has had a nice bounce with shares up ~6.2% last Thursday after reporting tremendous earnings. Though 2011 was a slightly positive year for the S&P 500, which has since been on an upward streak from the beginning of this year, AA shares have actually declined down from over $17 in 2011 to $9.85 as more »