Alcoa Stock-To-Aluminum Price Ratio At Recent High Level
As everyone is waiting for Alcoa's stock price report later today, it is worth noting that the company's Stock Price-To-Aluminum Price ratio has hit a one year high: the last time this relationship was at 0.78, the stock proceeded to plummet almost straight line to its low reading of 0.4. Granted, last time around China did not have a rampaging multi trillion credit bubble. Yet the stickiness of aluminum prices has been troubling: Alcoa's top line may be a key determinant of how this earnings season progresses, and is precisely what most pundits will be focusing on.
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