Reinvent the Wheel? New High

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Reinvent the Wheel? New High By Christian A. DeHaemer | Thursday, April 3rd, 2014 Look at this chart. Just look at it. That's not a fly-by-night penny stock — that's the old and boring Alcoa (NYSE: AA), rising like a metal phoenix. In 2008, the stock was at $45. AA got crushed along with the rest of the world during the Great Recession and has flat-lined for the last five years. But something interesting has happened to the world's third-largest aluminum producer in the past few months: It has nearly doubled. And there is reason to believe it will get better... Advertisement How the Deepwater Renaissance Can Line Your Pockets Goldman Sachs predicts spending on ultra-deepwater drilling projects will grow a whopping 40% PER YEAR through 2016. Energy consultancy Wood Mackenzie says spending on deepwater drilling is expected to rise from $43 billion last year to a whopping $114 billion in 2022. And we've uncovered the perfect way for you to cash in on deepwater drilling's revival — with a chance to collect $17,300 per year for the next 9 years. It's got nothing to do with owning Big Oil stocks, either. Get the full details by clicking here right now. Less Competition The world's largest producer of aluminum is United Co. Rusal (HK: 0486), a Russian company that trades in Hong Kong. Old Rusal isn't doing well... The company just posted its biggest annual loss since 2008. According to Reuters, Rusal's net loss widened to $3.2 billion in 2013 from a restated $528 million loss a year earlier. Adjusted earnings before interest, taxes, depreciation, and amortization fell 29% to $651 million. The company is looking at a $1 billion debt payment this year and doesn't know where to get the money. The company says it has to restructure its debt or go into default. This is after it closed its most inefficient plants and slashed 3.9 million metric tons of annual production, writing down $2 billion of assets in the process. Your Bones Sustain Me Bull markets are built on bodies of the last bear market. A Rusal default will mark the bottom. The price of aluminum has dropped from $1.40/lb. to $0.75/lb. and is getting close to the $0.60 rate it saw in 2009. Inefficient companies can't compete when times get rough. Rusal has cut production and may go out of business. This would be beneficial for the companies left standing... Advertisement How to Ride America's $398 Billion Robot Revolution for 1,578% Like computers before them, robots are evolving at lightning speed... changing the world... and creating a wave of new millionaires in the process. Says Bill Gates: "If I could only pick one thing, it would have to be robots." Gates knows what he's talking about. In fact, one robot stock has already delivered a staggering 5,000% return. Now you can tap this unstoppable trend for 5, 10, even 15 times your money — maybe a whole lot more... Click here now to get a piece of the action... Demand in the Wheelhouse Alcoa will survive, as it will see an increase in demand from aerospace, automobile production, and its upstream commodity segment as the price bounces back. Airplanes use a lot of aluminum, and Boeing and Airbus are selling a lot of airplanes these days. Alcoa says the long-term needs of the aerospace industry are expanding at the same time its inventory is diminishing. We are at the point in the lifecycle when companies need to place big orders to restock. Autos Ford has started making its iconic F-150 truck out of aluminum on a test basis, and Tesla makes its electric cars out of aluminum. This trend will continue with other automakers. Alcoa predicts it will triple its sales to automakers by 2015. Revenue will grow from $160 million last year to $580 million. And recently, Alcoa came out with the world's lightest heavy-duty truck wheel. It's 47% lighter than the standard and is made out of a new alloy called MagnaForce. The Wheel, Reinvented: That might not mean much to you, but it means a savings of 1,400 lbs. per 18-wheeler. This means better fuel economy that will help meet new federal emissions standards. As you can tell by the chart, Alcoa has hit a 52-week high. The trend is up. The company has a $13.8 billion market capitalization and a forward P/E of 21.15, which isn't bad for a turnaround company. It has $1.44 billion in cash and $8.32 billion in debt, and it pays a forward dividend of 1.10%. All the best, Christian DeHaemer @TheDailyHammer on Twitter Since 1995, Christian DeHaemer has specialized in frontier market opportunities. He has traveled extensively and invested in places as varied as Cuba, Mongolia, and Kenya. Chris believes the best way to make money is to get there first with the most. Christian is the founder of Crisis & Opportunity and Managing Director of Wealth Daily. He is also a contributor for Energy & Capital. For more on Christian, see his editor's page. I liked this article | I did not like this article Follow Energy and Capital on The Bottom Line Related Articles How to Drive 1,000 Miles in an Electric Car Tesla Graphene Investing Investing in Frac Sand Recently... Time for Plan 'B' One Drug to Treat Them All Not a Dry Hole in Sight King Coal is Back Energy at War

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