This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Foreign Stocks That Could Pop This Summer

Aluminum Corp. of China

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player
Aluminum Corp. of China (ACH), or Chalco, is another foreign resource stock that's getting heavily shorted by investors right now. The $5 billion aluminum producer is the biggest in the People's Republic, positioning that puts Chalco in good shape to service the domestic aluminum market. Chalco is also one of the lowest cost producers in a high production cost region for aluminum, which gives Chalco advantages over its peers at home but puts it at a disadvantage over foreign rivals that boast more bargain-priced production for the same market priced commodity.

In many ways, Chalco's reliance on the domestic market for aluminum in China is a good thing -- it also spares the firm from excessive exposure to Western markets, where aluminum demand is struggling. The Chinese government has been keen to prop up domestic markets for materials in the past, and Chalco's home team status could help the firm be first in line for support.

>>5 Stocks Immune to Europe's Problems

Chalco has also been working to better integrate its operations, adding fabricating plants to its business back in 2008 and 2009. That added capacity could eventually help boost margins that a fabricator would be earning on Chalco's aluminum production. Investors should keep a close eye on the unit's progress toward profitability.

Short-sellers have pushed the short interest ratio in Chalco up to 20.2, making it the most heavily shorted name on this list. At that level, it would take more than a month of buying pressure to cover shorts in ACH given current volume for the stock. Manufacturing data in China is likely to be one of the biggest catalysts for a sentiment change in this stock.
4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
ACH $8.83 0.23%
CHT $34.05 -0.73%
IMO $33.50 1.18%
LFL $7.19 2.42%
OIBR $0.32 6.73%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs