Why Alumina Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, aluminum producer Alumina (NYSE: AWC  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Alumina and see what CAPS investors are saying about the stock right now.

Alumina facts

 

 

Headquarters (founded)

Southbank, Australia (1970)

Market Cap

$2.4 billion

Industry

Aluminum

Trailing-12-Month Revenue

$200 thousand

Management

CEO John Bevan (since 2008)
CFO Chris Thiris (since 2011)

Return on Equity
(average, past 3 years)

1.3%

Cash / Debt

$38.5 million / $640.9 million

Dividend Yield

6.1%

Competitors

BHP Billiton (NYSE: BHP  )
Rio Tinto (NYSE: RIO  )
RUSAL

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 267 members who have rated Alumina believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, WilliamCrook2003, succinctly summed up the bull case for our community:

Alumina stock is a bargain at this share price and five years from now will have appreciated more than the S&P will have done. Aluminum stock piles will have become depleted in 2013 and production will have to be increased to make up for the shortfalls of this resource.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Alumina may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 31, 2012, at 1:53 PM, R219e wrote:

    The article indicates a 6.1% dividend yield.

    Does anyone know if a dividend has been announced? Is there a possibility that it will be less or that a dividend will not be paid? I haven't seen anything. Thanks.

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