By: Steve Zimmer
Staff Writer
Trading Activity
Buy
Alcoa Inc. (AA)
Alcoa Inc. produces and manages primary aluminum, fabricated aluminum and alumina. The company operates in four segments: alumina, primary metals, global rolled products and engineered products and solutions. Alcoa supplies aluminum to eight major markets, including the automotive, aerospace, construction, oil, commercial transportation, defense, packaging and consumer electronics industries. In the recent earnings report, Alcoa reported EPS of $0.28, beating analyst estimates of $0.25 while reporting revenues of $5.8B, narrowly missing analyst estimates of $5.94B. Alcoa was able to beat on EPS due to the better than expected negative impact on the price of aluminum on company performance during the quarter. Despite a large amount of supply of aluminum in the market, demand for Alcoa aluminum remains high. Ford Motor Company began using aluminum on the bodies of the F150, 50 percent of which is supplied by Alcoa. Alcoa also announced an agreement with Samsung to supply aluminum to be used for the Galaxy Edge. The class decided to add to its position of Alcoa due to it performing well on earnings, being well positioned to benefit from the auto and aerospace industries and a strong outlook for aluminum going forward.
Apple Watch Expected to Have Strong Sales on Release Date
In one of the most anticipated tech releases of the year, Apple is releasing its Apple Watch for purchase to the general public today. With strong pre-orders already estimated by Wall Street analysts, Apple Watch sales are expected to set a new record for wearable device sales in the U.S.
Apple Watch is being marketed as a phone accessory. The watch allows a person to read email, receive calls, check social media and complete many other tasks not mentioned—all without pulling a smartphone out of your pocket. With a cost of anywhere between $349 to $17K, Apple Watch may be considered by some as just another tech accessory, but Apple has many loyal customers and there are many who want the next big tech item, so expect massive lines outside Apple stores throughout the country today.
If you are interested in joining SIMM next year, it is available as a class or as an extracurricular activity. Any major and all experience levels are welcome. Researching companies and presenting recommendations provide education that can’t be found in any other class. If you are interested, feel free to contact Equity Fund manager Steve Zimmer at
