While forecasting demand growth of 6% over the next several quarters, Alcoa expects other areas of its business to see significant improvements. These include gas turbine markets, food packaging and commercial transportation. Likewise, there are also plenty of growth opportunities in areas such as appliances where names including General Electric ( GE) might become significant consumers of aluminum. Alcoa stands to benefit immensely once the market rebounds.
Alcoa deserves a considerable amount of credit for having done more with less. But "moral victories" are typically never enough to move stocks in the right direction. The good news is that it seems the company's management is committed towards returning value to shareholders. But it goes back to the question: How long are investors willing to wait? The stock looks incredibly cheap to me. But as I've said before, unless aluminum prices recover we may be repeating this for the next four quarters. This is no indictment on the company or its management. Alcoa today has considerable value. However, the stock will test your resolve. At the time of publication, the author held no position in any of the stocks mentioned. Follow @rsaintvilusThis article was written by an independent contributor, separate from TheStreet's regular news coverage.