BUY HOLD SELL - AWC
Earlier in the week, we presented Alumina (AWC) as the Trade of the Day. We noted at the time that the idea was more of an investment than a trade, and that we would do a BUY HOLD SELL this week. Here goes.
Alumina enjoyed a positive start to the week, as one of China’s top aluminium producers announced reductions in output at one of its largest alumina plants. Xinfa Group said that a short supply of bauxite has led to a 500,000-tonne annual cut in production. The announcement from Xinfa should support higher alumina prices over the next 12-24 months.
Joint venture partner Alcoa World Alumina & Chemicals (AWAC) recently announced strong Q4 2018 production numbers. Adjusted EBITDA came in at $683 million in its alumina segment. AWC currently has a gross yield...Continue Reading