Alcoa (NYSE: AA ) , the largest producer of aluminum in the U.S., was once a bellwether with a $40 billion market capitalization whose quarterly performance gave us a real sense of economic conditions at home and abroad.
Today, however, the company's market cap has plummeted to $8.5 billion, and its chief function as an economic gauge relates to its traditional role as the first component of the Dow Jones Industrial Average to tell us about its quarter. Following the market close on Monday it again performed that function, providing some optimism about what may be in the offing for others that will report behind it.
The numbers
Alcoa recorded a quarterly loss of $119 million, or $0.11 a share. However, excluding items, the company earned $0.07 per share, a penny higher than the consensus expectation among the analysts who follow it. Total revenue was $5.85 billion, down slightly from the $5.96 billion for the second quarter of 2012.
A portion of the one-time items -- $62 million -- involved reserves related to Department of Justice and Securities and Exchange Commission investigations into alleged corrupt payments in the sale of alumina in Bahrain. Management noted that a settlement of the Justice Department's charges could cost another $200 million. Beyond that, in an attempt reduce its costs, Alcoa took charges associated with shuttering a smelter in Italy and closing a pair of lines in Quebec.
10 Best Restaurant Stocks To Invest In 2015: Micron Technology Inc.(MU)
Micron Technology, Inc., together with its subsidiaries, engages in the manufacture and marketing of semiconductor devices worldwide. Its products include dynamic random access memory (DRAM) products that provide data storage and retrieval, which include DDR2 and DDR3; and other specialty DRAM memory products, including DDR, SDRAM, DDR and DDR2 mobile low power DRAM, pseudo-static RAM, and reduced latency DRAM. The company also offers NAND flash memory products, which are electrically re-writeable and non-volatile semiconductor devices that retain content when power is turned off. In addition, it provides NOR flash memory products that are electrically re-writeable and non-volatile semiconductor memory devices; phase change memory products; and image sensor products. Micron Technology?s products are used in a range of electronic applications, including personal computers, workstations, network servers, mobile phones, flash memory cards, USB storage devices, digital still c ameras, MP3/4 players, and in automotive applications. It sells its products to original equipment manufacturers and retailers through internal sales force, independent sales representatives, and distributors, as well as through a Web-based customer direct sales channel. The company was founded in 1978 and is headquartered in Boise, Idaho.
Advisors' Opinion:- [By Garrett Cook]
Micron Technology (NASDAQ: MU) shares were also up, gaining 5.07 percent to $32.85 after the company reported better-than-expected fiscal third-quarter earnings. Micron posted its adjusted earnings of $0.79 per share, beating analysts’ estimates of $0.69 per share.
- [By Jonas Elmerraji]
Nearest Resistance: $15
Nearest Support: $13
Catalyst: Technical SetupMicron Technology (MU) has shown some of the strongest consistent relative strength since the start of the year, up 115% since the calendar flipped over to January. The $14 billion flash memory maker has also consistently been one of the highest-volume stocks on the Nasdaq -- and today is no exception. Shares of MU are bouncing with the broad market today.
From a technical standpoint, MU is currently forming an ascending triangle setup, a bullish pattern with resistance above shares at $15 and uptrending support to the downside. Basically, as shares bounce in between those two technical levels, they're getting squeezed closer and closer to that $15 level. When and if $15 gets taken out, traders have their buy signal. If you decide to jump in MU, just keep a tight stop in place.
Top Penny Companies To Own For 2014: Cash America International Inc.(CSH)
Cash America International, Inc. provides specialty financial services to individuals primarily in the United States and Mexico. The company operates in three segments: Pawn Lending, Cash Advance, and Check Cashing. The Pawn Lending segment offers pawn loans through its pawn lending locations, which operate under the names Cash America Pawn and SuperPawn in the United States, and Prenda Facil in Mexico. This segment also sells previously-owned merchandise acquired from customers who do not redeem their pawned goods, as well as sells items purchased from third-parties or customers. The Cash Advance segment offers unsecured cash advances in selected lending locations that are operated under the names Cash America Payday Advance and Cashland in the United States; and short-term cash advances over the Internet under the names CashNetUSA in the United States, QuickQuid in the United Kingdom, and DollarsDirect in the Canada and Australia. This segment also involves in arranging loans for customers with independent third-party lenders through a credit services organization program; providing marketing and loan processing services for a third-party bank issued line of credit on certain stored-value debit cards that the bank issues; and purchasing a participation interest in certain line of credit receivables originated by the bank. The Check Cashing segment provides check cashing and other financial services, such as stored-value cards, money orders, and money transfers. This segment operates its check cashing locations under the Mr.Payroll name. As of December 31, 2009, it operated 676 pawn lending locations, including 667 company-owned units and 9 unconsolidated franchised units; 246 cash advance locations; and 120 unconsolidated franchised and 6 consolidated company-owned check cashing locations. The company was founded in 1984 and is headquartered in Fort Worth, Texas.
Advisors' Opinion:- [By Jake L'Ecuyer]
Shares of Cash America International (NYSE: CSH) got a boost, shooting up 9.22 percent to $42.05 after the company reported that it is planning to evaluate separation of online business.
- [By Ben Levisohn]
Shares of World Acceptance Corporation have plunged 19% to $79.19 at 3:43 p.m.–and dragged down anything remotely connected to payday lending. Cash America International (CSH) has dropped 7.8% to $39.35, pawn-shop operator EZCorp (EZPW) has fallen 3.7% to $12.33, and wire-transfer companies Western Union (WU) and MoneyGram International (MGI) have fallen 2.6% and 5.8%, respectively.
- [By Ben Levisohn]
Upgrades had a big impact on stocks today. Wendy’s (WEN), for instance, gained 4.5% to $8.62 after being upgraded to Buy at Argus, while Cash America (CSH) advanced 3.7% to $44.32 after being upgraded to Market Outperform from Market Perform at JMP Securities. Walgreen (WAG) proved the big winner in the S&P 500 after�Goldman Sachs called the stock a Conviction Buy.
Top Penny Companies To Own For 2014: Brocade Communications Systems Inc.(BRCD)
Brocade Communications Systems, Inc. supplies networking equipment comprising end-to-end Internet protocol based Ethernet and storage area networking solutions. Its Data Storage segment provides infrastructure products and solutions, including directors, switches, routers, fabric-based software applications, distance/extension products, management applications, and utilities to centralize data management; and host bus adapters, converged network adapters, mezzanine cards, and switch modules for bladed servers. The company?s Ethernet Products segment offers Open Systems Interconnection Reference Model (OSI) Layer 2-3 switches and routers, which enable the use of bandwidth-intensive network business applications and digital entertainment on local area networks and wide area networks; and OSI Layer 4?7 switches that allow enterprises and service providers to build network infrastructures to direct the flow of traffic, and file area network products and associated management s olutions. The company?s Global Services segment provides break/fix maintenance, extended warranty, installation, consulting, network management, and related software maintenance and support services; consulting and support services that assist customers in designing, implementing, deploying, and managing networking solutions; and post-contract customer support and extended warranties. It serves various businesses and organizations, which include global enterprises and service providers, such as telecommunication firms, cable operators, and mobile carriers. The company has a strategic partnership with LG-Ericsson. It offers its products and services to end-user customers directly, and through various distribution partners comprising original equipment manufacturers, distributors, systems integrators, and value-added resellers in the United States, western Europe, Japan, and the greater Asia Pacific region. The company was founded in 1995 and is headquartered in San Jose, Cali fornia.
Advisors' Opinion:- [By Rick Munarriz]
Thursday
Brocade (NASDAQ: BRCD ) steps up on Thursday. The provider of fabric-based data center networking solutions is one of the few companies expected to post flat financial results next week. Analysts see Brocade clocking in with a profit of $0.15 a share, flat with last year's showing. - [By Anders Bylund]
Networked storage specialist Brocade Communications Systems (NASDAQ: BRCD ) kicked out its poison pill plan in 2007, following an annual policy review that found it unnecessary. The company has often been the subject of buyout speculation in a rapidly consolidating storage market, but is still standing alone. Brocade shares have only gained 3% since the plan change, trailing the S&P 500's 29% returns.
Top Penny Companies To Own For 2014: Books-A-Million Inc.(BAMM)
Books-A-Million, Inc. operates as a book retailer in the southeastern United States. The company operates superstores and traditional bookstores that offer a selection of hardcover and paperback books, magazines, and newspapers. It also offers other merchandise, including gifts, cards, collectibles, magazines, music, DVDs, and electronic accessories, as well as coffee, tea, and other edible products. The company markets its products under the trademarks of Books-A-Million, BAM! Books-A-Million, Bookland, Books & Co., Millionaire?s Club, Sweet Water Press, Thanks-A-Million, Big Fat Coloring Book, Up All Night Reader, Read & Save Rebate, Readables Accessories for Readers, Kids-A-Million, Teachers First, The Write-Price, Bambeanos, Hold That Thought, Book$mart, BAMM, BAMM.com, BOOKSAMILLION.com, Chillatte, Joe Muggs Newsstand, Page Pets, JOEMUGGS.com, FAITHPOINT.com, Faithmark, Joe Muggs, Anderson?s Bookland, Snow Joe, Summer Says, On the John University, OTJU, American Whole sale Book Company, AWBC, and NetCentral. It also offers its products over the Internet at Booksamillion.com. As of August 11, 2011, the company operated 231 stores in 23 states and the District of Columbia. Books-A-Million, Inc. was founded in 1917 and is based in Birmingham, Alabama.
Advisors' Opinion:- [By John Udovich]
Vitamin Shoppe Inc (NYSE: VSI), Books-A-Million, Inc (NASDAQ: BAMM) and Perfumania Holdings, Inc (NASDAQ: PERF) have the dubious distinction of being�the worst performing small cap�specialty retail stocks for this year (according to Finviz.com) with losses of 4.85% and�3% and a gain of 0.61%, respectively, since the start of the year (See my previous article: This Year�� Best Performing Small Cap Specialty Retail Stocks? UNTD, TA & HZO). I should mention that the definition of specialty retail stocks might vary from one stock screener to another, but what�� clear is that these three small cap retail stocks have been heading in the wrong direction for investors for much of this year. �With that in mind, what sort of performance should investors expect from these small cap specialty retail stocks on Black Friday and for the all important holiday season? Here is what you need to be aware of:
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