AWC was the market’s best-performing stock yesterday rallying +2.9%, not a common position for the stock which has been under pressure for years. We are not a huge fan of this business as Alcoa (AA US) in the US struggles, with Alumina being the beneficiary of a portion of their earnings, but if everything was rosy it wouldn’t be trading at current levels. Only 1 of the 7 brokers shown on the Market Matters site that cover the stock have it as a buy with the other 6 saying either sell or strong sell, making it certainly in the contrarian corner – the company reports on the 22nd August.
- We are looking for increased exposure to China but AWC doesn’t tick the quality boxes on our end but it could easily pop higher.
MM is cautiously bullish AWC around $1.40
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