This Day On The Street
Continue to site
ADVERTISEMENT
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

No Respect, No Respect at All

After this quarter I am convinced, now more than ever, that Alcoa is on track for a good year. But until it actually has one, this might not matter. The headwinds against the stock are that strong. The worries about its debt picture, despite its cash position, are that deep -- deep enough that an analyst on the call still felt compelled to ask if Alcoa needs to issue equity in order to fix its balance sheet and pay the debt off that comes due this year.

Klaus Kleinfeld is the Rodney Dangerfield of CEOs. He does not get the respect he so very much deserves. One day it will happen. It just isn't happening now. I think it is a mistake that it isn't. But no judgment could be less consequential than mine about this vastly transformed company and its tremendous book of business.

One day that judgment will gain clout, and the stock will go back to where it was a couple of years ago -- when the company was not doing as well as it is now.

But not yet. Unlike so many other stocks, moreover, Alcoa is not paying you to wait, given that meager 1.4% dividend yield. Let's just hope, for Alcoa's sake, that it won't be because of a merely rising yield, but because of an increased payout. Maybe that's the only way for Kleinfeld to get respect and for his company's stock to reach the heights it deserves.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

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

Markets

Chart of I:DJI
DOW 15,660.18 -254.56 -1.60%
S&P 500 1,829.08 -22.78 -1.23%
NASDAQ 4,266.8370 -16.7550 -0.39%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs