##{"id":58986,"date":"2011-10-13T11:59:28","date_gmt":"2011-10-13T00:59:28","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2011\/10\/13\/sell-alumina-buy-bendelaide\/"},"modified":"2011-10-13T11:59:28","modified_gmt":"2011-10-13T00:59:28","slug":"sell-alumina-buy-bendelaide","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2011\/10\/13\/sell-alumina-buy-bendelaide\/","title":{"rendered":"Sell Alumina, Buy Bendelaide"},"content":{"rendered":"

\n\tWhat?<\/strong><\/p>\n

\n\tMarket strategists at Goldman Sachs advise their clientele to Sell shares in Alumina Ltd ((AWC<\/span>)).<\/p>\n

\n\tWhy?<\/strong><\/p>\n

\n\tGoldman Sachs has a rather subdued view on the near term outlook for aluminium<\/span> prices, noting the market has remained and is likely to remain in surplus for longer. Above all, the stockbroker believes that on a twelve months horizon Alumina Ltd shares will generate a net negative return while the Australian share market as a whole is anticipated to yield double digit total investment returns over the year ahead.<\/p>\n

\n\tSome Background<\/strong><\/p>\n

\n\tGoldman Sachs strategists have added Alumina Ltd to their Conviction List as a Sell. This is a rather rare occurrance<\/span>. Most names on the list are there for positive reasons. As of today, Goldman's Conviction List contains BHP<\/span> Billiton<\/span> ((BHP<\/span>)), Iluka<\/span> ((ILU<\/span>)), National Australia Bank ((NAB)), UGL<\/span> ((UGL<\/span>)), Wesfarmers<\/span> ((WES)) and Woodside ((WPL<\/span>)) as positive recommendations "with Conviction". Alumina shares are the only one on the negative side, showing the stockbroker's conviction in the Sell rating.<\/p>\n

\n\tWe note that stockbroker RBS<\/span> also issued a report today lining up what this stockbroker believes are prime candidates to either surprise or disappoint with their results in the year ahead. Alumina is mentioned as a prime candidate to disappoint with RBS<\/span> pointing at the Australian dollar and its potential impact on the company's cost levels.<\/p>\n

\n\tCiti<\/span> analysts equally expressed a subdued view on earnings forecasts and share price potential for Alumina in the months ahead.<\/p>\n

\n\tHaving said all of the above, most stockbrokers retain a positive view on Alumina and most of them express the view the shares are undervalued at present.<\/p>\n

\n\tAlso…<\/strong><\/p>\n

\n\tAlcoa, Alumina's JV partner, disappointed investors with its Q3<\/span> results earlier this week.<\/p>\n

\n\tWe couldn't help but noticing Asian Quant<\/span> analysts at Citi<\/span> only picked one stock from the Australian share market to maximise<\/span> returns from the share market rally everyone is expecting; Bendigo<\/span> and Adelaide Bank ((BEN)).<\/p>\n

\n\tFNArena<\/span> subscribers can find more information about all stocks mentioned via Stock Analysis on the website.<\/p>\n

\n\t <\/p>\n

\n\tFind out why FNArena<\/span> subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"