Aluminum Corp. of ChinaAluminum 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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV