July-11 Time to talk about Aluminum stocks

I was 100% correct on the futures price of Aluminum, which just hit the all time high at LME. However, I was wrong about the stock price of Aluminum stocks, including ACH. We know that the stock price is determined by the company performance. The major reason of the downtrend of ACH is the ER of this company - profit halved. However, we know this problem was due to the low metal price in the first half and the snow storm in China, as well as the market environment. I think it is more important to consider the strategy from now on.

We see higher Aluminum price again and we also want to benefit from that. Major institutes dumped the stocks, fine, as we can predict the metal price will go up, there is a good opportunity to collect cheap stocks - the company performance will show up in the 2nd half and then it would be too late to catch up.

Do remember, by 2010, China will be the pure importer of Aluminum. It's time to strategically long Aluminum stocks.