AA, Alcan update

AA feb 22 2014 b

aa july 7 2013AA feb 22 2014 s

Back on July 9th we already liked the stock but thought it might still be missing the always elusive 5th wave. Well the timing was perfect even if the count, perhaps, was not. Now with the benefit of hindsight we have to assume that the 5th wave failed to make a new low (by about a dollar), or that the entire correction was already over and a new bull had started (that is a wave 1 followed by irregular a-b-c wave 2). Either way the next up leg should be pretty robust. They are still selling beer, building planes and yachts and now even entire cars and the cost of electricity has gone up, so why not aluminum. A buy.