Alcoa (NYSE:AA) is about to announce quarterlies. It has become the traditional kick off for earnings season. Alcoa is the first major to announce and market pundits start to blog, twitter and spew. They attract a lot more attention than other majors.
In effect they walk point on the jungle trail. The enemy sniper sees them first. The enemy the booby trap gets them first. Alcoa comes into hot contact with the marketplace first. Inadvertently they attract a lot of attention which creates volatility because of their self selected earnings announcement timing.
Are the shareholders well served by this. Probably not. This volatility has nothing to do with the business risk of Alcoa. Why would an investor want to accept the risk?
Note to management. Stop going first. You have no obligation to feed the news cycle and you are probably hurting your investors. So stop it already!
Disclosure: George Gutowski writes from a caveat emptor perspective. I hold not positions in any stocks mentioned in this post. I hath no plans to initiate new positions within the next 72 hours.
- Not-So-Great Expectations for Alcoa (online.wsj.com)
- Alcoa Puts Show Earnings Risk After 46% Stock Plunge: Options (businessweek.com)
- Alcoa declares quarterly dividends (marketwatch.com)
- Is Alcoa the Right Stock to Retire With? (fool.com)
- Apple, Alcoa edge up after brief after-hours drop (marketwatch.com)
- Alcoa declares 3-cent common stock dividend (seattletimes.nwsource.com)