No doubt this is high. But you have to weigh this in the context of consensus earnings growth estimates of 18% next year and then 35% annually for the 5 years afterwards. If credible, this is a solid investment.
I languished in AA since 08/2011. I was thinking of bailing, now that I've broken even or am making a tiny profit. But I believe we're on the cusp of a secular bull market, one where aluminum demand will rise in many supply chains.
I don't believe AA can go down much. At least for new investors, this might be a credible growth chasing stock. Even if highly valued.
shorting 12.12 and going long CLF 21 against it. Wayyyy over bought AA though eventually could see it move up to 14. Talking many months, potentially year or two. Meanwhile, watch for consolidation down to 10 1/2 - 11