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Bull Case Scenario Alcoa $AA, $XME

Aluminium demand and pricing are set to recover from cyclical lows. All of which will help leverage Alcoa’s earnings model.

If, as and when the global outlook improves Alcoa will participate and reward shareholders.

Alcoa is a low-cost producer with decent margins. The Saudi Arabian facilities are ultra-low cost. As demand drives upward pricing pressure margins will leverage quickly.

George Gutowski writes from a caveat emptor perspective