Alcoa Inc. Location Manager Ken McMillen, left, Sen. Lamar Alexander, Alcoa CEO Klaus Kleinfeld, U.S. Rep. John J. Duncan Jr., and Gov. Bill Haslam arrive for a groundbreaking for a $275 million expansion of the Alcoa Inc. rolling mill to produce automotive sheet aluminum on Thursday, Aug. 29, 2013, in Alcoa. (Paul Efird/News Sentinel)
After being booted from the Dow Jones Industrial Average earlier today, aluminum company Alcoa Inc. rushed to assure shareholders the decision was no big deal.
“The composition of the Dow Jones Industrial Average has no impact on Alcoa’s ability to successfully execute our strategy, and we remain focused on delivering shareholder value. We continue to grow our value-add businesses and capture growth opportunities in end markets like aerospace and automotive,” Alcoa said in a statement.
Alcoa, a long time component of the DJIA, has a major manufacturing operation in Blount County. The company recently announced a $275 million expansion of the Blount County plant aimed at producing aluminum for auto manufacturers.
Although the DJIA is generally considered an index of the top U.S. companies, only 30 companies are used to calculate the index. Alcoa remains on the S&P 500, which is a much broader gauge of the market.
Bank of America, and Hewlett-Packard also were removed from the DJIA.
Added to the DJIA were Goldman Sachs, Visa and Nike.
The changes take effect Sept. 23.
Click here for Alcoa’s full statement.
Photo: In this May 5, 2012, photo, Warren Buffett, chairman and CEO of Berkshire Hathaway smiles on the exhibit floor where Berkshire products aer showcased, prior to the annual shareholders meeting in Omaha, Neb. (AP photo/ Nati Harnik)
Ruby Tuesday shares are within sniffing distance of their 52-week low, but not all market watchers are worried.
Writing for TheStreet.com, Jonathan Heller, president of KEJ Financial Advisors, says the Maryville-based restaurant chain deserves watching despite its recent bad earnings report.
Among other positives, Heller notes that RT owns considerable real estate.
“This is no small chain, with about 825 locations, 740 of which are company operated. But the kicker here is that the company owns the land and building for 368 locations and building only for another 250. That’s a potentially interesting portfolio of commercial real estate, especially considering the company’s current $730 million enterprise value. At current levels, shares also trade at just 0.76x tangible book value.”
Alcoa Inc. wasn’t supposed to have a good first quarter — not according to the experts.
But the aluminium giant fooled the analysts and opened earnings season with a surprise when it reported a first quarter profit of 9 cents a share. That’s a clear rebound from a loss of 18 cents a share in the fourth quarter last year.
If the experts can miss so badly on Alcoa, what else do the analysts have wrong?
Alcoa, which has a major manufacturing operation in Blount County with more than 1,200 employees, was supposed to be struggling with a weak economy. Maybe the economy is doing better than the experts believe.
Earnings season is just starting, but today at least investors are in a happier mood. The market as a whole is rebounding from the April slide and Alcoa shares are rising.
Should investors truly bank on the Santa Claus Rally? Jeffrey Saut thinks so.
Check out Saut’s interview with Breakout on Yahoo Finance. Saut, managing director of financial services company Raymond James Associates, offers six reasons to believe stocks will end the year with a flourish.
The Dow tumbled nearly 300 points Wednesday. Jobs numbers are disappointing. The dollar is weak. If you believe some of the talking heads on TV, the next great financial crisis is just around the corner.
As you’ve probably heard by now, 2011 will be a banner year for investors. It’s an absolute lock, according to the venerable Super Bowl Indicator.
According to this theory, when the winner of the Super Bowl is a team from the old NFL the stock market soars. When the winner is from the old AFL, the market drops. Over the years, the SBI has been right about 80 percent of the time.
Fortunately for investors, this year’s game features two old school NFL teams — the Pittsburgh Steelers and Green Bay Packers.
But if you’re looking for a maximum market bounce, cheer for the Steelers.