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

Cramer Is Waiting for Alcoa to Drop

NEW YORK ( TheStreet) -- Debra Borchardt: Alcoa (AA - Get Report) kicks off the earnings season on Tuesday but is it really relevant anymore Jim? I mean, we feel like we talk about Alcoa but they've had so many revenue misses in a row. Why do we care about Alcoa?

Jim Cramer: Because there's two Alcoas. There's the Alcoa that goes into Apple (AAPL) iPads, the back of an iPad. An Alcoa that goes into construction, it's a very big construction company. Alcoa puts a huge amount of screws in planes, everybody's plane, aerospace. There's turbine business, natural gas. There's autos, there's trucks. So you have this big panoply of end markets, but then there's the business of the commodity. The commodity is what's kept them down. No matter what you do you can't get the cost low enough. They did close some Italian and Spanish factories and that could help alleviate some of the glut. I know that it's a disappointing stock - over and over again.

I've got a piece I'm working on about how people should forgive and that maybe if they fail and Alcoa sells off it looks good. Look at the way Disney (DIS) bounced back and Deere (DE) bounced back and Discover (DFS) bounced back, Alcoa might be one to watch because if we get a second half worldwide recovery, Alcoa's going to do better.

Debra Borchardt: Analysts don't have very positive feelings towards Alcoa right now.

Jim Cramer:Number's too high.

Debra Borchardt: The average earnings estimate number has been coming down.

Jim Cramer: Still probably too high.

Debra Borchardt: Are they going to set that bar really low and then be able to get it?

Jim Cramer: They've set it lower and lower and lower and it's never mattered.

Debra Borchardt: It's like the limbo.

Jim Cramer: It's just never mattered so I don't know if it's going to matter this time. I do want to point out that there is value creation. There was a ratings downgrade, a questionable downgrade putting it on watch. I think Alcoa's balance sheet is getting better, not worse. So, I like what Klaus Kleinfeld, the CEO, is doing. I don't want to give up on Alcoa. I think it's a name that Stephanie Link and I kicked around again. We've been cursed in it so we didn't go back in it.
1 of 2

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
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
Only $49.95
14-Days Free
14-Days Free
AA $11.17 0.18%
AAPL $93.75 -1.10%
FB $117.53 0.69%
GOOG $693.00 0.29%
TSLA $240.76 -2.81%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs