No. 7: Alcoa
Q2 Return: -13%
YTD Return: +1%
Investor: Jeff Reeves
InvestorPlace Editor Jeff Reeves’ pick Alcoa (NYSE:AA) outpaced the S&P 500 with 18% returns year-to-date in the first quarter — but it has been downhill from there.
Jeff threw out an early “I told you so” as his prized pick posted strong earnings on Jan. 9, making nine straight quarters of year-over-year revenue growth and an increase in YOY profit in eight of the previous 10 quarters. Alcoa then had more good earnings news for its 2012 first quarter, announcing it made 9 cents per share against expectations for a 3-cent loss.
However, the usual woes — you know, the economy, Europe, China’s slowdown, weak demand for materials — have taken their toll on Alcoa come Q2, as they did on many others.
When Jeff originally picked Alcoa, it was because aluminum prices had no where to go but up — and he still says that is again the case now that AA once again has taken a beating.
For now, though, Alcoa’s dwindled dynamic start leaves it slightly up for the year, but still near the back of the pack.
Disclosure: Jeff Reeves owns a personal position in Alcoa stock.