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Stock Market & Financial Investment News

News Breaks
April 7, 2014
12:38 EDTAAEarnings Preview: Alcoa shares near 52-week high ahead of Q1 report
Alcoa (AA) is scheduled to report first quarter earnings after the close on Tuesday, April 8, with a conference call scheduled for 5:00 pm ET. Alcoa is a global manufacturer of aluminum products. EXPECTATIONS: Analysts are looking for EPS of 5c on revenue of $5.56B, according to First Call. The consensus range for EPS is 0c-8c on revenue of $5.39B-$5.7B. LAST QUARTER: Alcoa reported fourth quarter adjusted EPS of 4c against estimates for 6c on revenue of $5.6B against estimates for $5.38B. The company forecast 2014 global aluminum demand growth of 7%. CEO Klaus Kleinfeld said, "we put a number of legacy matters behind us, clearing a path for Alcoa’s continued transformation in 2014." On the company's Q4 earnings conference call, management targeted $850M of additional year-over-year productivity gains in 2014. This was expected to be achieved by overhead cost reductions, procurement savings, and process productivity. For 2014, the company said it expects to build value-add with growth capital of $500M, an investment in its Saudi JV of $125M, and management of sustaining capital of $750M. Generating positive free cash flow will continue to be the target for 2014, and the company expects to manage its capital structure to a debt to capital ratio in the range of 30%-35% by the end of 2014. The company's initial outlook for the 2014 Alumina supply-demand situation is that the market will be in surplus of just under 2M metric tons or roughly 2% of the global market. STREET RESEARCH: Street research has been mixed in the weeks leading up to Alcoa's Q1 earnings report. On January 21, JP Morgan upgraded Alcoa to Overweight from Neutral, citing the tightening aluminum markets and increasing regional aluminum premiums. The firm raised its price target for Alcoa to $15 from $9. On March 14, Sterne Agee initiated Alcoa with a Buy rating and $15 price target. Conversely, on March 6, Standpoint Research downgraded Alcoa to Hold from Buy. On April 2, Nomura said there was significant downside risk to Alcoa's 2014 earnings estimates given the fall in LME aluminum prices and GRP margin pressures in Europe. The firm lowered Alcoa's FY14 EPS view to 14c from 28c, and FY15 EPS view to 31c from $1.32. It reiterated its Neutral rating and $8 price target on the shares. PRICE ACTION: Despite the company's worse than expected Q4 profit, Alcoa shares have rallied approximately 18% over the past 90 days, touching a 52-week high of $13.18 in early April. Over the past twelve months, the stock is up over 51%. In early afternoon trading ahead of tomorrow's Q1 report, Alcoa shares are down just over 1%.
News For AA From The Last 14 Days
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October 23, 2014
16:16 EDTAAAlcoa to sell ownership stake in Mt. Holly Smelter to Century Aluminum
Alcoa (AA) announced that it has reached an agreement to sell its ownership stake in the Mt. Holly aluminum smelter in Goose Creek, South Carolina, to Century Aluminum Company (CENX) for $67.5M in cash, plus an additional potential earn-out. Mt. Holly is owned 50.3% by Alcoa and 49.7% by Century. The sale is subject to customary regulatory approvals, and is expected to close by the end of Q4. Based on current estimates, the transaction will not result in a significant gain or loss to Alcoa.
16:09 EDTAACentury Aluminum to acquire full ownership of Mt. Holly Smelter for $67.5M
Century Aluminum Company (CENX) announced that its wholly owned subsidiary has entered into a definitive agreement to acquire Alcoa's (AA) 50.3% stake in the Mt. Holly aluminum smelter. Mt. Holly, located in Berkeley County, South Carolina, employs approximately 600 people and has an annual production capacity of 229,000 metric tons of primary aluminum. Following the closing of the transaction, Century will own 100% of Mt. Holly. Pursuant to the terms of the agreement, Century will acquire Alumax of South Carolina, a subsidiary of Alcoa and owner of Alcoa's 50.3% interest in Mt. Holly, for $67.5M in cash less certain amounts owed by Alumax to Mt. Holly and subject to working capital and other similar adjustments. The transaction is expected to close in Q4 and is subject to customary closing conditions.
October 15, 2014
09:02 EDTAAAlcoa to sell stake in Jamalco to Noble
Alcoa and Noble Group announced the signing of a definitive agreement that will result in Alcoa World Alumina and Chemicals selling 100% of its ownership stake in the Jamalco bauxite mining and alumina refining joint venture to Noble for $140M. AWAC will continue as the managing operator for three years under a compensated service agreement and employees will remain employed by Jamalco. The Jamalco joint venture is 55% owned by Alcoa Minerals of Jamaica and 45% owned by Clarendon Alumina Production. AMJ is part of the AWAC joint venture, owned 60% by Alcoa and 40 percent by Alumina. CAP is a company wholly owned by the Government of Jamaica. The sale is subject to customary regulatory approvals, and is expected to close by the end of Q4. As a result of the transaction, Alcoa will record a non-cash loss of approximately $80M-$100M, or between 7c-9c per share, after-tax and non-controlling interest in Q4. This sale is in line with Alcoa’s strategy to create a globally competitive commodity business.
09:01 EDTAAAlcoa to sell stake in Jamalco to Noble
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October 14, 2014
16:00 EDTAAOptions Update; October 14, 2014
iPath S&P 500 VIX Short-Term Futures down 40c to 39.11. Option volume leaders: AAPL TSLA TWTR AMZN GILD C JNJ AA NFLX PBR according to Track Data.
October 13, 2014
09:39 EDTAAActive equity options trading on open
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