Friday, February 25, 2022

ALCOA for a 20% Return

Underlying Security Symbol: AA

 

Alcoa is in that asset class that is hot right now.  Steel, hard metals, and aluminum are trading briskly. Alcoa just restarted their dividend and announced the second quarterly dividend of a whopping ten cents.  You can see I am not adding AA for the dividend.  I am adding it because I like the asset class, I like the fundamentals and I really like the calls.

YOY revenue and income growth and a D/E ratio of .37 and the fundamentals I like.   The hair on this holding is the P/E ratio which is 33.  That is high for me but this is the rare case where I have made so much money on this momentum stock that I am sticking my foot back in the water.  I will have several calls assigned in the next few weeks.  Each call that I expect to be assigned has been a money maker. I am hoping this call will be assigned as well.

I added today and sold this call.



 

 

 

 

 

 

 

 

 

 

Good income investing.  Stay diversified. Add on weakness.  Pay attention to asset classes.  That's all there is to it.  MM MoneyMadam

Data from Schwab.com and Marketxls

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