I am upgrading my Alcoa’s price target to $16.30
Aluminum scrap is in shortage and aluminum price has been increasing. Deutsche bank recently downgraded Alcoa Inc, resulting in the breakout failure. If DB just stfu, Alcoa Inc would have led the DOW upwards. Look at my other stock in my portfolio – United States Steel $X, it rose 5% on STEEL price.
Alcoa is still in play. My price target is even higher now. However, we have to review its earnings next week. If earnings is bad, I will definitely get out. So the question is what is good?
It is better to see it at price levels.
If earnings were ….. , Price would be….
10cts - $13.6
15cts - $14.3
20cts - $15.3
25cts - $16
30cts - $17
How did I come up with this numbers? By calculating future EPS and discounting them using CAPM.
1 comment:
what now is dropping. On Monday, I'm sure this is a 5 dollars downturn. I see you at 9bucks.
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