ALCOA INC. $8.58 - New York symbol AA

ALCOA INC. $8.58 (New York symbol AA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.1 billion; Market cap: $9.4 billion; Price-to-sales ratio: 0.4; Dividend yield: 1.4%; TSINetwork Rating: Average; www.alcoa.com) is looking at more ways to cut costs, as aluminum prices have dropped 33% from their 2011 peak.

In response to the lower prices, the company has already closed about 13% of its smelting capacity. It is now thinking about lowering its production by a further 11%. This should help it reach its goal of cutting its operating costs by around 10% by 2015.

Alcoa is a buy.

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