Top 3 Companies in the Aluminum Industry With the Lowest Price to Book Ratio (AA, CENX, KALU) 1 hours 46 minutes ago - Financial News Network Online - News Corner via Comtex
Below are the three companies in the Aluminum industry with the lowest price to book ratios. Often companies with the lowest ratio present the greatest value to investors.Alcoa (NYSE:AA) is lowest with a price to book ratio of 0.73. Alcoa Inc. produces primary aluminum, fabricated aluminum, and alumina, and participates in mining, refining, smelting, fabricating, and recycling. The Company serves customers worldwide primarily in the transportation, packaging, building, and industrial markets with both fabricated and finished products. Potential upside of 28.4% exists for Alcoa, based on a current level of $10.20 and analysts' average consensus price target of $13.10. The stock should run into initial resistance at its 50-day moving average (MA) of $10.55 and subsequent resistance at its 200-day MA of $14.43.
Century Aluminum (NASDAQ:CENX) is next with a price to book ratio of 0.85. Century Aluminum has traded 671,000 shares thus far today, vs. average volume of 1.8 million shares per day. The stock has underperformed the Dow (-3.2% to the Dow's -0.6%) and underperformed the S&P 500 (-3.2% to the S&P's -0.6%) during today's trading.
Finishing up the bottom three is Kaiser Aluminum (NASDAQ:KALU), with a price to book ratio of 0.93. Kaiser Aluminum share prices have moved between a 52-week high of $57.29 and a 52-week low of $40.12 and are now trading 15% above that low price at $46.27 per share. The 200-day and 50-day moving averages have moved 0.05% lower and 0.31% lower over the past week, respectively.
I didn't need to read this today to happily buy 2700 shares at $10.13. Are you kidding me? Stock is cheap! Only fools are selling at these prices. Smart money is buying.
Debt is the vehicle for growth, as the commodity increases, the govt devalues the dollar. The wealth is in paying back debt at 50% value it was encumbered at five years later, when the value of the underlying commodity is 200%--the same way your house value was grown before they killed the golden goose.
Your house, 400K, became $440K in three years, not because it was a good investment, but because it was valued in depreciating dollars against real things, like gold silver aluminum and cotton.
That's the value of this company, it's cheap, cheaper today as folks don't get it, and will be a cash cow as good as silver and gold.
Better--it actually goes into products that are used.
AA is the best of breed. If you're worried about ups and downs, sell a few covered calls at $11 due this Friday for a dime. Make your OWN "dividend".