We see both these stocks moving higher

Article Excerpt

On November 1, 2016, Arconic spun off its bulk aluminum business (Alcoa) as a separate company. Each investor received one Alcoa Corp. share for every three ARNC shares they owned. Arconic has gained 34% since the split, but Alcoa is down 21%. Even so, there are several reasons why we see both of them moving higher over the next few years. ARCONIC INC. $26 (New York symbol ARNC; Conservative Growth Portfolio, Manufacturing & Industry sector; shares outstanding: 453.1 million; Market cap: $11.8 billion; Price-to-sales ratio: 0.8; Dividend yield: 0.3%; TSINetwork Rating: Average; www.arconic.com) is a leading maker of engineered aluminum products for cars, buildings and jet engines. In February 2019, the company announced plans to reorganize into two businesses: Engineered Products & Forgings, and Global Rolled Products. It will then spin off one of the two divisions. Arconic expects the separation will cost it between $100 million and $200 million. However, to offset that, the company expects to sell up to $200 million of its smaller…

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