Insider Buying/Technicals Say To Nibble On Alcoa
By Bret Jensen:Commodity stocks have been hammered in last two months. Some stocks in the sector are trading not much above where they were in midst of the crisis in 2008/2009. This leads to some interesting opportunities for patient investors. One stock in the space worth nibbling at is Alcoa (AA).Positives for Alcoa:
- The company is trading under where it was two years ago even though operating cash flow is roughly double those levels.
- A couple of insiders made the first buys in quite some time in mid-April.
- Although the stock is down some 20% in the three months, consensus earnings estimates for the last ninety days have stayed stable.
- There is appears to good technical support levels here (See Chart) and not much above the bottom of the financial crisis.
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Four reasons Alcoa is long term value bet at just over $8 a share:
- The stock is