NEW YORK (TheStreet) -- Over the past several years, Alcoa (AA) management has expressed ambitions for entering the aerospace industry. To some, this seemed nothing more than talk. But it's a great idea, and Alcoa is taking steps to make it happen.
From my vantage point, entering the high-growth aerospace area was a logical move for Alcoa, seeing as global aluminum prices have been under pressure due to commoditization. Plus, the company was dealing with excess inventory, competitive pressures and weakness in emerging markets, among other issues.
Getting into aerospace was going to take time, however. And Alcoa's CEO Klaus Kleinfeld made no promises -- only telling investors to be patient and trust that they'll be rewarded. The Dow (DIA), which kicked Alcoa off its index last year, didn't want to wait. That was a bad decision.
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