This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Will London clear up the pipeline for metals stocks?

Stocks in this article: AA SCCO TC URG URRE SSRI

By James Dennin for Kapitall.

The London Metals Exchange (LME) oversees more than 700 warehouses to make sure the pipeline that takes metals from miners, to distributors, to manufacturers—stays clear. 

The wait-time on aluminum has grown from 15 months to almost two years over the last 12 months, prompting some lawmakers to call for reforms. The LME issued a ruling that would require storage facilities with the longest waits to release more metal than they receive. 

That new rule would lower wait-times on the metal, helping keep prices low. Aluminum prices in particular have been rising as car manufacturers switch away from heavier metals like steel. 

Growing prices have beer manufacturers in particular concerned. Some estimates tally the additional cost of scarce aluminum to these companies at $6 billion. Reforms at the LME would certainly help the situation, although they would take time to have a measurable effect. 

With that in mind, we decided to screen metals stocks for promising names. To do that we looked for stocks in basic materials: industrial metals, silver, copper, gold, and aluminum. We then ran a screen on those stocks for companies with spikes in institutional purchasing from groups like hedge funds. 

Since the managers of these funds are professional investors, they often have access to better information than retail investors. We found 6 metals companies that had spikes in purchasing.

Do you think these firms are right to be bullish on metal? Use the list below to begin your analysis and let us know what you think in the comments. 

Click on the interactive chart to view data over time. 

 

 

1. Alcoa, Inc. ( AA): Engages in the production and management of aluminum, fabricated aluminum, and alumina. Market cap at $19.48B, most recent closing price at $16.56.  

Net institutional purchases in the current quarter at 73.6M shares, which represents about 6.29% of the company's float of 1.17B shares. 

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs