recap of some stocks talked about before in this forum.
for 2002 Alcan should earn $1.80-$2 US a share, this is assuming Aluminum trades at .62US lb.
for 2003 earnings could be as high as $3+ if aluminum goes to .70 US lb, as long as it stays in the .62-.65 range earnings should be over $2 US
the stock pays a 2.30% yield, the div is safe which cannot be said many divs.
there is further cost saving measures that should drive earnings higher.
Alcan has great leverage to aluminum. It has recently got booted from the SP 500 index because it was a foreign stock...cdn. dumb decission but that is another topic.
Aluminum should stay at .62 or go higher if the world economy can continue slow growth, even 1% would work. a decline in the world economy could put presure on Aluminum. also China is starting to produce more of the commodity and the production should only increase over time.
Basically the stock is cheap, it pay over 2% yield while you wait and trades just over 11X earnings. there are worse stocks to own. let us hope it can go on another ride, to the high $50s, $60.
thanks
selkirk
for 2002 Alcan should earn $1.80-$2 US a share, this is assuming Aluminum trades at .62US lb.
for 2003 earnings could be as high as $3+ if aluminum goes to .70 US lb, as long as it stays in the .62-.65 range earnings should be over $2 US
the stock pays a 2.30% yield, the div is safe which cannot be said many divs.
there is further cost saving measures that should drive earnings higher.
Alcan has great leverage to aluminum. It has recently got booted from the SP 500 index because it was a foreign stock...cdn. dumb decission but that is another topic.
Aluminum should stay at .62 or go higher if the world economy can continue slow growth, even 1% would work. a decline in the world economy could put presure on Aluminum. also China is starting to produce more of the commodity and the production should only increase over time.
Basically the stock is cheap, it pay over 2% yield while you wait and trades just over 11X earnings. there are worse stocks to own. let us hope it can go on another ride, to the high $50s, $60.
thanks
selkirk
