Bill MacLachlan
Alcan Aluminum
AL-T
BUY
Mar 24, 2005
The acquisition certainly hasn't resulted in the kind of synergies, increase in earnings and dominance that many had expected. The recent weakness is an opportunity to BUY. The general view in the market is that maybe we are close to a peak in commodity prices and this would also reflect the price.
Stock had a good top because of the offer from Alcoa (AA-N). Whatever happens to the price of aluminum in the near term will not be based on fundamentals. A lot of variables are going on, so there is no assurance the stock will go higher. If you own, take some partial profits.
Early on in the process of a bidding war. If you own, continue to hold. Main risk is a Pac Man defence where Alcan tries to buy Alcoa (AA-N). You might lock in a bit of profit at this point.
Has been a long term favorite of hers. Has just had a big pop, and they sold some.Expects the company to go higher.They've maintained a conservative balance sheet.
There is a takeover bid in play. (caller asked how) To sell your shares, you can tender your shares, (call your broker), or sell on the market. Recommends tendering.