Let’s talk about Century Aluminum (NASDAQ:CENX).
Century Aluminum originally spun off from commodities giant Glencore. (It was their portfolio, mostly aluminum obviously.)
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The stock has been on a tear, and yet it has so much more room to the upside. Especially if you see a rebound on the horizon -- particularly in America. Most of their plants are U.S.-based, with one in China and another in the Netherlands. Other than that, they’re in Kentucky, and its headquarters is in Illinois. (A lot here in this country in the heartland.)
After a precipitous free fall in prices and demand, aluminum is hot again. This was exemplified by last quarter earnings results that showed earnings leverage, strong cash flow and lower debt. While it feels like you might be chasing here, the stock changed hands at $73 back in April of 2008. For now, I’m looking for a breakout at $30 to spark the next leg higher, this could mean a move to $40.
I like it as a trade, I like it long-term, but I will add the caveat: greater-than-average volatility and risk.DISCLOSURES