Tuesday, October 06, 2009
Matt Koppenheffer :: Townhall.com Columnist
Great Call on Alcoa! What's Next?
by Matt Koppenheffer
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Alcoa 's (NYSE: AA) third-quarter earnings report on Wednesday will serve as a whole lot more than commentary on a single aluminum company.

Investors will be looking at Alcoa's earnings for signs of life in the broader economyand the materials markets. The report will also serve as the kickoff of third-quarter earnings season, when companies will try to prove that investor confidencesince the March market bottom has been warranted.

But at the same time, the earnings report will be a glimpse at how Alcoa itself is performing. Will it best the $0.12-per-share loss that Wall Street analysts are expecting? Will it show continued improvement in cash production? Will the company's operational efficiency efforts prove worthwhile?

For some perspective on how investors see Alcoa we can turn to the collective opinion of the Motley Fool CAPS community. The stock has 2,509 outperform calls versus 185 underperforms, giving it a four-star rating (out of a possible five).

While a great many CAPS members have scored big points by betting on Alcoa, none have done better than current Alcoa score leader gembree, who has made three outperform calls on Alcoa, nabbing a cool 124 points on those timely calls.

gembree is one of CAPS' All-Stars -- players with a rating of 80 or greater -- and has managed an impressive stock-picking accuracy of 84% while racking up nearly 9,500 points. Alcoa isn't this player's only great call. Here's a look at a few of the other prescient picks:

Company

Date Picked

Date Ended

Call

Points

CAPS Rating
(out of 5)

Dow Chemical (NYSE: DOW)

3/18/09

Still Open

Outperform

191

****

Whole Foods Market (Nasdaq: WFMI)

12/17/08

9/11/09

Outperform

144

**

Silver Wheaton (NYSE: SLW)

10/20/08

9/11/09

Outperform

143

****

Data from CAPS.

So what has this investor been looking at more recently? Here are a few of the most recent calls on CAPS:

Company

Date Picked

Call

CAPS Rating
(out of 5)
Continued...

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About The Author

Matt Koppenheffer is a contributor to the Motley Fool.

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