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I'm seeing a bargain with this stock, what am I missing?

Posted on 3/25/13 at 8:52 am
Posted by Vols&Shaft83
Throbbing Member
Member since Dec 2012
69895 posts
Posted on 3/25/13 at 8:52 am
AA- Alcoa Aluminum. Now, forgive my Tennessee Bias, but $8.47 seems ridiculously low for this company, long term.

Am I missing something?
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 3/25/13 at 8:54 am to
Probably. Keep hunting until you find it, the market isn't that dumb when it comes to a big company like Alcoa.
Posted by gizmoflak
Member since May 2007
11659 posts
Posted on 3/25/13 at 8:57 am to
Aluminum? Nah, plastics is where you wanna be. PLASTICS
Posted by C
Houston
Member since Dec 2007
27816 posts
Posted on 3/25/13 at 9:00 am to
I'll add AA to my stock tracker and do some research. Does anyone have any other stocks they think are undervalued? I have money sitting on the sidelines that I'd like to invest. Looking for low risk, high reward... (aren't we all? )
Posted by Lsut81
Member since Jun 2005
80092 posts
Posted on 3/25/13 at 9:06 am to
quote:

Does anyone have any other stocks they think are undervalued?


I've asked multiple times and haven't gotten a real response... What are the thoughts on PetroQuest (PQ)?

Was at $8 in November, now at 4.40... Look at their balance sheet, it looks like everything that caused the downturn is trending in the right direction once again

Thinking about picking up a few hundred shares and sitting on it for a little while.
Posted by donRANDOMnumbers
Hub City
Member since Nov 2006
16900 posts
Posted on 3/25/13 at 9:59 am to
From what I've read about it is that the technicals are fine, the market for metals is just completely saturated. Supposedly saturated through 2014.
Posted by Catman88
Baton Rouge, LA
Member since Dec 2004
49125 posts
Posted on 3/25/13 at 10:07 am to
I bought a shite load of ACAD at around 2 bucks. I still think its looking to make it to 13 so there is still some room there.

If they get FDA approval on the Parkinson Treatment they are working on this stock will skyrocket even more. Just a risky play though so beware.
This post was edited on 3/25/13 at 10:08 am
Posted by C
Houston
Member since Dec 2007
27816 posts
Posted on 3/25/13 at 10:13 am to
quote:

What are the thoughts on PetroQuest (PQ)?


way too small of a company for me to be comfortable with. I'm looking for multi-national, diversified companies with good balance sheets.
Posted by C
Houston
Member since Dec 2007
27816 posts
Posted on 3/25/13 at 10:14 am to
quote:

Just a risky play though so beware.


Yeah I'll pass.
Posted by jso0003
Member since Jun 2009
5170 posts
Posted on 3/25/13 at 10:54 am to
quote:

Aluminum? Nah,plastics is where you wanna be. PLASTICS


its ALL ball bearings nowadays ...
Posted by LSURussian
Member since Feb 2005
126951 posts
Posted on 3/25/13 at 11:16 am to
quote:

but $8.47 seems ridiculously low for this company,

AA won't come back until (or, unless) aluminum prices ever recover.

While almost all other industrial metals prices are within 10-15% of their five-year highs, aluminum is selling 35-40% below where it was 5 years ago.

I owned AA for several years. I finally gave up on it last year when it hit $9+ for the first time in a while. I lost on it.....
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 3/25/13 at 11:22 am to
Rds.b,cop,Cvx,xom...,shell,ConocoPhillips,chevron,exxon....in that order of which I'd buy...all $100b+ companies traing at under 10x earnings
Posted by C
Houston
Member since Dec 2007
27816 posts
Posted on 3/25/13 at 11:24 am to
I need diversification. I work in O&G so I need to play other markets when investing. Retail, technology, manufacturing, services...


Banking kinda scares me at the moment so I don't know if I'd look there as a personal preference. And with all the bitcoin talk...
Posted by hottub
Member since Dec 2012
3325 posts
Posted on 3/25/13 at 12:23 pm to
quote:

Does anyone have any other stocks they think are undervalued? I have money sitting on the sidelines that I'd like to invest.


APA
Posted by C
Houston
Member since Dec 2007
27816 posts
Posted on 3/25/13 at 12:24 pm to
quote:

APA


O&G ...
Posted by matthew25
Member since Jun 2012
9425 posts
Posted on 3/25/13 at 12:40 pm to
I have been watching AA for awhile. Only 1.5% dividend. China subsidizes aluminum. Looks like a speculative play. Analysts are slightly bullish.
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 3/25/13 at 12:51 pm to
I know you work in oil and gas and its fine you don't want to invest in it BUT

would you rather buy amazon @ 3700x earnings and no dividend

or

SHELL @ 7x earnings with a 5.2% yield that rises every year

I know shell won't go up 10x in the next decade but amazon may not either, at the end of the day you can sleep like a baby at night if you own shell,conoco,exxon,chevron
Posted by C
Houston
Member since Dec 2007
27816 posts
Posted on 3/25/13 at 12:55 pm to
quote:

would you rather buy amazon @ 3700x earnings and no dividend

or

SHELL @ 7x earnings with a 5.2% yield that rises every year


Knowing how shell operates, I'd probably buy amazon...
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 3/25/13 at 1:06 pm to
I mean I know about the loss on iranian oil and I know their depleting oil fields are an issue....the convenience stores I own are shell, so im a fan....but we're talking about OIL, it's going to go up in price and a 5%+ yield re-invested over a decade will leave you sitting pretty i promise..
This post was edited on 3/25/13 at 1:07 pm
Posted by Vols&Shaft83
Throbbing Member
Member since Dec 2012
69895 posts
Posted on 3/25/13 at 1:12 pm to
quote:

Knowing how shell operates, I'd probably buy amazon...


If that's a moral call, well OK. If it's an investing call, I'm gonna disagree, long term anyway.

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