Alcoa will be “free cash flow positive very soon”

Discussion in 'Stocks' started by ASusilovic, Jul 8, 2009.

  1. July 9 (Bloomberg) -- Alcoa Inc., the largest U.S. aluminum producer, expects government economic-stimulus spending in China and the U.S. to boost metal demand enough to help the company start generating cash again.

    China’s measures have spurred infrastructure projects and boosted consumer spending, pushing domestic aluminum demand beyond supply for the first time since the global recession forced metal producers to curtail output, Chief Executive Officer Klaus Kleinfeld said yesterday.

    “One of things that the Chinese government very smartly does these days is that they are stimulating people that it’s good to not have too much savings and to buy new cars and get a new air-conditioner,” Kleinfeld said on a call with analysts.

    Alcoa, the first company in the Dow Jones Industrial Average to announce results for the three months through June, yesterday reported a second-quarter loss excluding certain items of 26 cents a share. That was smaller than analysts’ average estimate in a Bloomberg survey for a 38-cent loss. The company will be “free cash flow positive very soon,” Chief Financial Officer Charles McLane said on yesterday’s call.

    The loss was New York-based Alcoa’s third straight, the first time that has happened since 1992

    Alcoa rose 38 cents, or 4 percent, to $9.84 at 7:59 p.m. in trading after the official close of the New York Stock Exchange. The shares declined 16 percent this year through the close of regular U.S. trading on July 8.

    The Chinese government is spending 4 trillion yuan ($585 billion) to stimulate its economy, the world’s third-largest.

    Management made in Germany. Long Alcoa :)
  2. JAP


    This is the kind of drivel companies spew out during earnings. Let's face it, most companies have no real earnings these days, only a future forecast of earnings... which is total nonsense.

    You'll also hear many companies who will "beat the street by a penny"... more BS.
  3. Tide31


    Unfortunately their biggest customers are making airplanes and cars . . . and not very many these days.
  4. Wall st. today is reminiscent of all the companies in the late 90's.

    They all had some b.s. headline statement about future growth, future earnings, "eyeballs", "pagehits", etc., etc.

    Anything to distract you from the horrendous top and bottom lines.
  5. JAP


    Notice how AA gave all of last nights AH rally back today :p
  6. I am just waiting for some short covering rally :

    Alcoa Inc $ 9.23
    AA -0.23
    Short Interest (Shares Short) 75,189,300
    Days To Cover (Short Interest Ratio) 1.6
    Short Percent of Float 7.83 %
    Short Interest - Prior 74,033,200
    Short % Increase / Decrease 1.56 %
    Short Squeeze Ranking™ -9
    % From 52-Wk High ($ 35.66 ) -286.35 %
    % From 52-Wk Low ($ 4.97 ) 46.15 %
    % From 200-Day MA ($ 8.77 ) 4.98 %
    % From 50-Day MA ($ 10.25 ) -11.05 %
    Price % Change (52-Week) -70.70 %
    Shares Float 960,380,000
    Total Shares Outstanding 974,276,387
    % Owned by Insiders 0.30 %
    % Owned by Institutions 69.40 %
    Market Cap. $ 8,992,571,052
    Trading Volume - Today 92,759,332
    Trading Volume - Average 46,295,600
    Trading Volume - Today vs. Average 200.36 %
    Earnings Per Share -1.07
    PE Ratio
    Record Date 2009-JunB
    Sector Basic Materials
    Industry Aluminum
    Exchange NY


  7. Why is that a smart thing?
  8. I'm in $AA for the long haul.
  9. That's what Cramer said about Bear Stearns.

    And Digital Island. lmao.