Anyone investing in aluminum?

[YALE]

Ahem...

That's not what he's asking.

[Ruffdaddy]

Seriously?

Ahem...

First let me say that being common doesn't mean anything. There is a lot of intellectual property in aluminum blends and processing methods so the presence of aluminum in earth's crust means nothing. Especially when it comes to the valuation of a technical company. Ford and other automakers will most likely require strict control on the types of aluminum they use for quality purposes enhancing the value of this IP.

I'm talking about investing in the aluminum manufacturers and the alloying companies. If aluminum does continue pushing steel out of the market, it will continue to increase the market cap for aluminum. Obviously there's already someone here that has made a decent profit from investing in Alcoa, so to say it's a failing plan is completely stupid.

And Yale talks out of his ass about anything he can in an attempt to sound smart. It works to impress the simple folks like racrguy Nobody is thinking about seriously stockpiling aluminum (at least I hope not).

The only one person that I would trust on this matter is Slow99, so I will ask point blank to him...why would an aluminum company be a bad investment?

[slow99]

Do a 10 year and add SP500.

http://www.google.com/finance?q=AA&ei=4UHxU8jNCMf1qAHT3IGoCg

[Ruffdaddy]

I don't know what means asshole.

Maybe I'm thinking from a simplistic standpoint...and maybe that's the problem, but as the oil and gas industry expands, servicing companies increase in value as well. And the servicing companies with strong IP far exceed the market pace. Why isn't it feasible for aluminum related tech companies to react the same?

[slow99]

I don't know what means asshole.

Maybe I'm thinking from a simplistic standpoint...and maybe that's the problem, but as the oil and gas industry expands, servicing companies increase in value as well. And the servicing companies with strong IP far exceed the market pace. Why isn't it feasible for aluminum related tech companies to react the same?

Clink the link, select the 10yr option at the top of the chart.

Alcoa has underperformed the S&P500 by about 140% over the period. Commodities are volatile as hell - they were the beneficiary of a huge tailwind on the back of all the growth in China. Do you think Chinese GDP growth is likely to decelerate or accelerate from here? Chinese demand comprises about 50% of the global aluminum market. Most think the commodity super cycle is over. I certainly don't want to jump in front of anything that looks like the DJP chart over the last couple years.

I can't tell you which way AA will trade from here, but aside from the aluminum commentary, there are lots of reasons NOT to buy anything. Hell, this shit isn't easy.

[Ruffdaddy]

I see...thanks for the education!!!

[Nash B.]

Hell, this shit isn't easy.

Maybe not, but you sure make it look that way.

[2011GT]

Savings bonds!!!