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This column was originally published on RealMoney on Oct. 11 at 3:23 p.m. EDT. It's being republished as a bonus for TheStreet.com readers.

After last night's

Alcoa

(AA) - Get Alcoa Corp. Report

disaster, the commodity bears were out in full force, claiming the company's poor quarter was evidence that the run in the metals stocks is over. In my mind, nothing could be farther from the truth.

Extrapolating broad-based weakness in commodity stocks based on Alcoa, a horribly mismanaged, serial underperformer, is akin to predicting strength for all tech stocks because of strong results from

Google

(GOOG) - Get Alphabet Inc. Class C Report

. While most industrial metal stocks' prospects are ultimately levered to global growth, they each have their own unique supply and demand dynamics.

My favorite name in the group is

TheStreet Recommends

Phelps Dodge

(PD) - Get PagerDuty, Inc. Report

, which is up $3 today, extending recent gains and trading at its highest level in over a month. Driving the stock is news that activist hedge fund Atticus Capital, which owns 10% of PD, said in a regulatory filing that it had met with an investment bank and several potential investors to discuss a possible acquisition of the company. Atticus, which was one of the funds that helped break up the proposed

Inco

(N)

/Phelps Dodge merger, has been calling for Phelps Dodge to either sell itself or buy back a significant amount of stock for months. Now it seems to have taken matters into its own hands.

Phelps Dodge is an incredibly cheap stock, and with Atticus pushing to unlock the company's value, I think shares still have more upside. The company trades at less than six times next year's projected earnings and it has more than $2 billion in cash with which to buy back stock (including a $475 million breakup fee from Inco). Unless you think copper prices are set to collapse next year, Phelps Dodge is definitely worth a look.

In keeping with TSC's editorial policy, Jonathan Edwards doesn't own or short individual stocks. He also doesn't invest in hedge funds or other private investment partnerships.

Edwards is a research analyst at TheStreet.com, where he works with Jim Cramer on Action Alerts PLUS. He follows the health care, consumer and financial sectors, with a focus on value stocks. Edwards appreciates your feedback;

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