$AA – Alcoa,Inc – last closed at $8.06 – Bullish (long term)

Alcoa, Inc is a lightweight metals manufacturing company. Its products, which include aluminum, titanium and nickel, are used in aircraft, automobiles, commercial transportation, packaging, building and construction, oil and gas, defence, consumer electronics, and industrial applications across the world. The Company operates in four segments: Alumina, Primary Metals, Global Rolled Products, and Engineered Products and Solutions.

Post today’s market close, Alcoa will announce its reports for Q4. It will also announce its $1.5 Billion Long-term supply contract with General Electric Inc’s Aviation Unit, underscoring its efforts to offset the difficult market conditions.

Wall Street’s fourth-quarter forecast for Alcoa’s EPS is 0.04 whereas, Estimize’s 115 respondents predict that EPS would be slightly higher at 0.06.

The company has been restructuring from 2008, and on September 28, 2015, AA announced that it would separate into two separate companies, one upstream and the other value add. This is expected to be completed in the second half of 2016.

Since April 13, 2015, the stock had 2 insider buys, and 0 selling transactions implying a positive sentiment towards the company.

The mineral industry is currently in turbulent times. With the prices of aluminium hitting low, Alcoa has a 52-week trading range of 7.81 and 17.10. Technical traders seem to be of the opinion that there will be further reduction in price.

But with the Upstream and Value add businesses valued at $3.2BN and $3.8BN excluding restructuring charges, which is higher compared to the current valuation, as well as with Auto industry players like Ford who are constantly in search of aluminium for reducing weight of vehicles thereby increasing mileage, the potential growth in the Auto space is something that we need to watch out for. Not to forget, be on the lookout for today’s announcements post market close.

 

$BMY – Bristol-Myers Squibb Co – last closed at $63.63 – Bullish (long term)

Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It provides chemically-synthesized drugs or small molecules, and biologics in various therapeutic areas, including virology comprising human immunodeficiency virus infection (HIV); oncology; neuroscience; immune-science; and cardiovascular.

One of its institutional investors – Marshwinds Advisory Company decreased its position in shares of Bristol-Myers Squibb Co (NYSE: BMY) by 2.3% during the fourth quarter. Marshwinds Advisory Company holds 44,367 shares of BMY which makes upto 1.6% of Marshwinds Advisory Company’s holdings.

 

 

Also, Trade-Ideas LLC identified Bristol-Myers Squibb Company (BMY) as a “roof leaker” due to the following reasons –

  • BMY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $294.9 million.
  • BMY has traded 3.9 million shares today.
  • BMY is trading at 1.53 times the normal volume for the stock at this time of day.
  • BMY crossed below its 200-day simple moving average.

According to thestreet.com, roof leaker stocks are worth watching as they begin to experience a breakdown and can lead to massive losses. Once psychological & technical barriers like the 200-day moving average are breached, the stock may be subject to emotional selling from investors.

Whereas, several brokerages including Zack’s, Credit Suisse and Guggenheim have upgraded their ratings of BMY to “Buy” with a target consensus of over $70.  Bristol-Myers Squibb Company recently corroborated with a startup – Dual Therepeutics, LLC to advance small molecule compounds for the treatment of cancer and other diseases. According to analysts, the company has sound fundamentals with BMY outperforming the industry growth by 0.3%, its Debt-Equity ratio as low as 0.48, and its profit margins at over 70% and has a positive sentiment in the market.

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