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3 Reasons to Sell Alcoa

By Taylor Muckerman - Apr 17, 2013 at 1:13PM

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How will you know it's time to sell your position in this enormous aluminum producer? Here are 3 ways.

In this video, Taylor Muckerman highlights his reasons to sell Alcoa (AA). First, the company has little exposure to emerging markets. This means that Alcoa's growth potential is limited to the world's largest economies which tend not to grow as fast as emerging economies. Second, Alcoa faces increased competition from Chinese aluminum producers, which means that China is meeting its domestic needs but also exporting aluminum. Third, there is a worldwide surplus of aluminum that is constraining prices and profit margins.

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