Official Let's Make Some Money Off Stocks Thread
07-10-2008, 04:33 PM
#293
I wouldn't add to oil positions at this level.
If you want to buy something look into Alcoa. It is undervalued in the low $30s and is a takeover target. They just reported earnings and the company did better than expected. It is a safe bet in a crazy market.
If you want to buy something look into Alcoa. It is undervalued in the low $30s and is a takeover target. They just reported earnings and the company did better than expected. It is a safe bet in a crazy market.
07-10-2008, 04:37 PM
#294
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Originally Posted by AZDavid,Jul 10 2008, 08:33 PM
I wouldn't add to oil positions at this level.
If you want to buy something look into Alcoa. It is undervalued in the low $30s and is a takeover target. They just reported earnings and the company did better than expected. It is a safe bet in a crazy market.
If you want to buy something look into Alcoa. It is undervalued in the low $30s and is a takeover target. They just reported earnings and the company did better than expected. It is a safe bet in a crazy market.
07-10-2008, 04:49 PM
#297
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Originally Posted by AZDavid,Jul 10 2008, 04:43 PM
You are correct.
Nothing has changed, most analysts are in my camp.
CVRD (RIO) is doing some major fundraising. Some believe they will submit a bid for Alcoa before year end. I believe the credit markets have really hurt any chance Alcoa had for a buyout the first half of the year. The news of China closing aluminum plants today was a great plus for Alcoa. Lower supply drives the underlying commodity price up.
We will just have to sit back and see...
I also believe EMC is a buyout candidate at this level. EMC after a spinoff of VMW shares is worth far more than the market is currently valuing it.
Nothing has changed, most analysts are in my camp.
CVRD (RIO) is doing some major fundraising. Some believe they will submit a bid for Alcoa before year end. I believe the credit markets have really hurt any chance Alcoa had for a buyout the first half of the year. The news of China closing aluminum plants today was a great plus for Alcoa. Lower supply drives the underlying commodity price up.
We will just have to sit back and see...
I also believe EMC is a buyout candidate at this level. EMC after a spinoff of VMW shares is worth far more than the market is currently valuing it.
My favorite metals producer which I own a good stake is RTP. I bought into Rio Tinto at $175 a few years ago.....its one of a few metals producers I own....I think its the most undervalued out of the bunch.
Fair Value is $750 at the moment.
I think RIG is also underpriced....fair value is $330/share.
ATW is $190/share
DO is $215/share.
There is shoulder season in the fall....but again...we blew through the spring shoulder season like it was nothing.
ATW EPS estimates for next qtr are way higher....they should report well and blast forward on higher.
07-10-2008, 04:53 PM
#298
I like oil but want to see things calm down a little.
ATW, DO, and RIG are great companies but have been dead money since May. I want to see what direction they are going to move before buying.
In other words they are fairly valued at the moment (at least in the market's eyes).
ATW, DO, and RIG are great companies but have been dead money since May. I want to see what direction they are going to move before buying.
In other words they are fairly valued at the moment (at least in the market's eyes).
07-10-2008, 04:58 PM
#299
Alcoa has been sold off the past several weeks because investors were afraid of bad earnings numbers for the quarter. Now that we are past the report I see Alcoa going to $40 in short order.
Also, how can you not love a company that is buying back 25% of the float.
Also, how can you not love a company that is buying back 25% of the float.
07-10-2008, 07:06 PM
#300
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I like AA too. But looking ahead, I'm worried about their exposure to automotive and aircraft slowdowns. Aren't those their primary customers? Might be a drag on next couple of quarters.