Back to top

Press Releases

The Zacks Analyst Blog Highlights: Alcoa, Tesla Motors, Aluminum Corporation of China, RioTinto and Goldman Sachs

AA TSLA RIO GS

 ZacksTrade Now


For Immediate Release

Chicago, IL – June 26, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Alcoa Inc. (AA - Analyst Report), Tesla Motors (TSLA - Analyst Report), Aluminum Corporation of China Limited , RioTinto plc. (RIO - Analyst Report) and The Goldman Sachs Group Inc. (GS - Analyst Report).

 

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Monday’s Analyst Blog:

Alcoa Appreciates Tesla’s Model S

 

Alcoa Inc. (AA - Analyst Report), one of the members of the Aluminum Transportation Group (ATG), applauded Tesla Motors (TSLA - Analyst Report) on the launch of its Model S electric vehicle. The Model S is an electronic vehicle that intensively uses aluminum, which reduces weight and produces zero emissions while offering rapid acceleration and nimble performance.

The ATG educates vehicle manufacturers about the benefits of aluminum in transportation applications and increase its usage in transportation through research and development activities. The ATG acts as a central resource for the automotive and commercial vehicle industries on aluminum issues. There are increasing concerns about automotive safety and fuel economy and it is where aluminum plays an important role in the design and engineering of cars and light trucks.
    
As per Tesla Motors, aluminum will reduce the overall weight of Model S to help maximize efficiency and range. The structure of the model is designed in such a way that it not only provides protection to the passengers, but also enables smooth handling of the car. Aluminum forms an integral aspect of the car as almost every parts of the car that are visible are made up of aluminum.

Tesla intends to increase the production of Model S throughout 2012 and plans to deliver 5,000 vehicles by the year-end. Reservations for the model currently exceed 10,000 units.

Pennsylvania-based Alcoa Inc. is among the world’s leading producers of primary and fabricated aluminum and alumina. The company is engaged in mining, refining, smelting, fabricating and recycling of aluminum.

A few months back, Alcoa released its first-quarter 2012 results. The company reported earnings of 9 cents per share in the quarter, compared with earnings of 27 cents in the first quarter of 2011. Excluding restructuring charges and other items, Alcoa's profit came in at 10 cents per share, beating the Zacks Consensus Estimate of a loss of 4 cents but missing the year ago profit of 28 cents. The impressive results were attributable to higher production and volumes, and improved market conditions.

Quarterly revenues inched up 0.3% sequentially to $6,006 million and edged up 0.8% over the prior-year quarter. It surpassed the Zacks Consensus Estimate of $5,735 million. The increase in revenues was driven by strong results in the company’s Global Rolled Products and Engineered Products and Solutions businesses.

Alcoa competes with Aluminum Corporation of China Limited and RioTinto plc. (RIO - Analyst Report). Currently, the stock maintains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating. We have a long-term Neutral recommendation on the shares of Alcoa.
 

Legal Mess for Goldman Continues

 

According to Reuters, the federal judge in New York rescinded the bid filed by The Goldman Sachs Group Inc. (GS - Analyst Report) regarding the dismissal of a lawsuit charged against the bank, accusing it of selling risky debts via misleading statements. The U.S. District Judge, Paul Crotty, has ordered the plaintiffs to pursue the proceedings over their claims against Goldman relating to the offering of collateralized debt obligations (CDOs) stating "Goldman's arguments in this respect are Orwellian”.

CDOs typically repackage bonds and other assets into new securities. These are not traded on a public exchange, allowing firms like Goldman to generate fees through brokering deals between buyers and sellers. However, CDOs have performed miserably since these were invested in securities comprising sub-prime mortgages, which are known to have larger-than-average risk of defaulting in the market. Eventually, the market downturn ruined the investment banker’s expectations, resulting in huge losses for the common investors.

The aforesaid lawsuit has been filed by the shareholders of the company in Manhattan federal court. They claimed that Goldman concealed the fact of betting against its clients by taking short positions in four CDO transactions, which were sold to the investors. Institutional investors, such as the Arkansas Teacher Retirement System, the Plumbers and Pipefitters National Pension Fund and the West Virginia Investment Management Board are also among the plaintiffs.

All these plaintiffs alleged that Goldman’s act of concealing facts at the time of entering such transactions led to inflated stock prices. Therefore, investors faced losses when the lawsuits were filed against Goldman relating to these transactions, which led to a fall in its share price.

The complaints claimed that Goldman deceptively sold the sub-prime mortgage-linked securities that gradually failed. In addition to that, it misrepresented the value of instruments by providing materially misleading statements.

.

 

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

http://www.zacks.com

 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%