Alcoa Inc (NYSE:AA) Surging Stocks

Posted In Business, Markets - By Matt Schrock On Tuesday, April 1st, 2014 With 0 Comments

Dallas, Texas 04/01/2014 (ustradevoice) – One of the World’s largest aluminum producers, Alcoa Inc (NYSE:AA) has launched spectacular innovations in the market only to leave its competitors thinking of ways to overtake the newbie innovation. It is also equally balancing the supply and production to maintain proper equilibrium for continuous growth and advancement.

Short Sellers run away

Reports have it that in the recent past only the short interest in Alcoa Inc swelled by a whopping 32.1% in just two weeks. Also the short sellers owned greater than 40 million shares in the Company’s stock. Then it seems absurd now that these Short sellers are bailing out on the Company. Shares of the Company did well this year and have been moving forward. The Company stock is up by more than 18% even though the market has been flat.

Also with the launch of the new Ultra One Wheel by Alcoa Inc (NYSE:AA), the stock has surged by 18%. We could only conclude after such endearing success the surging of the stock price scared off the short sellers. The Ultra One wheel has done immensely well in the market as it weighs only 47% of what the steel wheels weigh thereby increasing the fuel efficiency of the rigs. Reportedly the fuel also meets all the strict emission requirements of the government.

Cutting the Capacity in Brazil

Reportedly, Alcoa has announced that it will soon cut around 147K metric tons of aluminum smelting plants in Brazil in an attempt to curtail the production of aluminum. Basically Alcoa Inc (NYSE:AA) is trying to cut down the idle plants and cease their production. Reportedly, around 62K metric tons of capacity of aluminum will be curtailed at the Pocos Smelter and around 85K metric tones of capacity of aluminum will be curtailed in Sao Luis in Brazil. But sources also mention that the refinery maintained by Alcoa in Sao Luis, the cast house and aluminum power plant in Pocos would all carry on their regular – day-to-day operations. Alco had also announced earlier this year that it would also perform cutbacks in Australia by completely shutting down its Point Henry smelter for aluminum and two rolling mills situated there as well, that is, in Australia.

About the Author

- Matt Schrock received Bachelor of Arts in Mass Media Communications from Penn State University.

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