Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, January 15, 2010

Article Excerpt

In next week’s Wall Street Stock Forecaster Hotline, we’ll reveal our #1 U.S. pick for 2010. ALCOA INC., $15.63, New York symbol AA, slumped 6% this week after it reported earnings that fell short of analysts’ expectations. In 2009, the aluminum maker lost $924 million, or $1.06 a share. That was much higher than the loss of $0.75 a share that analysts were expecting. In the prior year, Alcoa earned $450 million, or $0.27 a share. Sales fell 31.5%, to $18.4 billion from $26.9 billion, on weaker demand from clients in the automotive, aerospace and construction industries. As a result, Alcoa’s aluminum production fell 11%. Aluminum prices also dropped 32% during the year. That put further downward pressure on sales. Alcoa has closed plants and cut 16% of its workforce in response to the lower sales and prices. These moves saved it over $2.4 billion in 2009. The company put $759 million of these savings toward its debt. Its $9-billion long-term debt…