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

[video] Jim Cramer Quick Take: What to Watch With Alcoa

NEW YORK ( TheStreet) -- Alcoa (AA - Get Report) will report earnings Tuesday for the first time since being dropped from the Dow Jones Industrial Average.

While the company has faced currency headwinds and weak aluminum pricing, TheStreet's Jim Cramer told Brittany Umar that many people don't view it as a two-part company.

Many overlook the part of the company that produces the two million screws that go into each Boeing (BA) jet or produces the aluminum skin on the back of Apple's (AAPL) iPad.

But then there's the other side of the company, which makes aluminum. There is a glut of the commodity, Cramer said, and it can't climb in price, much like natural gas. When the company reports earnings, he'll be watching for three things: a rising Chinese forecast, an in-line truck forecast and perhaps a rising European forecast.

He reminded investors CEO Klaus Kleinfeld likes to make forecasts, and if he confirms that China and Europe are improving, it would be huge. While some analysts have been clamoring for a stock split, Cramer doesn't think it would help.

He concluded that a split would be an option when the balance sheet improves but thinks investors should root for an improving earnings story instead. However, he said, earnings won't take off until aluminum prices improve.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AA $13.46 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs