Good Monday to everyone. What a great week we had again last week to close out the month of September and start on a positive note in October. Our first positions of the new month, on Friday, were Direxion Daily Financial ETF (FAS) and a 
Short Sale that we set on Gymboree. We were able to pull away a small 0.5% gain on FAS and a nice 2.75% gain on our short. Additionally, on Friday, we initiated new coverage of a new company in Nordstrom (JWN). We started the company off as a Hold with a price target of $45. Finally, we sold out our Midterm Trade in Mosaic (MOS) for a solid 3.3% gain.
Today, we are looking at a new Play of the Week, and this afternoon I will be posting a brand new Oxen Report results from the month of September with new totals for the month. To the right, I posted a chart on Netflix (NFLX) since I know its a position a lot of people follow with Phil. Doesn’t look good…
Let’s get into this week’s Play of the Week…
Play of the Week: Alcoa Inc. (AA)
Analysis: I am not a huge Alcoa (AA) fan as a play during the earnings season because it has so much pressure on it, but I do think this company could have had a very solid quarter. Even better, though, is that I think that company could see some positive growth moving into earnings on a pullback.
There are several reasons that I like AA. The first starts with that I like the company’s possibility of moving higher before earnings. Last year, at this time, Alcoa was not looking strong at all and was projected to report a negative earnings again. The company, however, surprised everyone with a 100%+ earnings surprise and shot off after earnings. Since then, earnings have tapered off and been pretty much in line the last two quarters. This quarter, though, analysts are looking for a 50% gain year-over-year with an EPS of 0.06. That 100%+ gain, however, will get this company some definite attention moving into earnings.
Another big positive is aluminum prices. After bottoming out at the end of last quarter, aluminum prices have been on a steady incline ever since. The selling range has been $1950-$2300 per 25 tonnes. The average price between Q2 and Q3 really is pretty close. The median price in Q2 and Q3…
