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Alcan Aluminum (AL.TO)

TOP PICK
This is a value play. Generating a lot of free cash flow. They tend to buy back stocks or increase dividends. A world-class company.
BUY
One of his current favourite stocks. In the metals sector which has been very strong, and which he expects to continue. Great balance sheet and cash flow. Have a big new plant opening in Asia.
PAST TOP PICK
(A Top Pick Nov 14/06. Up 12.5%.) Had a spike up to $65 and he took some profits at that time.
PAST TOP PICK
(A Top Pick Jan 31/07. Up 1%.) Aluminum looks very strong on a secular basis. One of a few metals that is seeing increasing consumption. Has a very strong cost advantage.
BUY
An extremely well run company. Feels there will be substitution of aluminum for other heavier metals.
BUY
An extremely well run company. Feels there will be substitution of aluminum for other heavier metals.
HOLD
Feels it will go higher with the persistent rumours that it is going to be taken out.
PAST TOP PICK
(A Top Pick Nov 14/06. Up 16.1%.) Rumours of a takeover have pushed the price up and he has taken some profit on this. Doesn't believe it will be acquired.
TOP PICK
A low-cost producer because of its contracts with Hydro utilities. Diversified globally. Very good management. Could be a takeover target.
SELL
There are acquisition rumours, but he doesn't think this will happen. If you own, take profits.
DON'T BUY
Not one of her favourite companies. Doesn't expect them to be acquired.
TOP PICK
Generating well over $1 billion in free cash flow. Aluminum is one of the few metals that have some good organic growth. Major beneficiary of the growth in China. Earnings where a tad disappointing today, but they should continue to generate great earnings.
BUY
US economy is gradually slowing. Also, does not believe China's growth will slow this year. China's lack of ability to produce aluminum is probably due to hydro shortage. Would not be surprised to see base metals go up. Likes the fundamentals on this company. Looks inexpensive.
BUY
He has a model price of $69.52, which is a positive differential of 21%.
DON'T BUY
Aluminum was a lagging commodity, but has done well of late. Expect they will come off a bit at this point.
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