Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, May 26, 2017

Article Excerpt

ARCONIC INC., $27.42, New York symbol ARNC, is a leading maker of engineered aluminum products for cars and jet engines. On November 1, 2016, Arconic set up its bulk aluminum business as a separate company called ALCOA CORP., $33.27, New York symbol AA; it also handed out 80.1% of the shares in that firm to its shareholders. Each investor received one Alcoa Corp. share for every three ARNC shares they owned. Arconic has now sold all of its remaining Alcoa shares. Since the spinoff, both Arconic and Alcoa have gained 45%. Activist investor Elliott Management owns 13.2% of Arconic. It wants the company to cut costs and boost profit margins. Right now, Arconic’s margins are just 20% compared to 30% at Precision Castparts, a major competitor. This week, Arconic agreed to place three of Elliott’s nominees on its 13-member board of directors. Elliott will also help it search for a new chief executive officer. Meantime Arconic should benefit as aerospace and automotive companies use more…