We like both the parent and spinoff

Article Excerpt

On November 1, 2016, Arconic spun off its bulk aluminum business (Alcoa). Each investor received one Alcoa Corp. share for every three ARNC shares they held. The split has let both companies focus on improving their core operations. Their smaller size has also enhanced their takeover prospects. We continue to see each as a buy. ARCONIC INC. $31 (New York symbol ARNC; Manufacturing & Industry sector; Shares outstanding: 481.3 million; Market cap: $14.9 billion; Takeover Target Rating: Medium; Dividend yield: 0.8%; TSINetwork Rating: Average; www.arconic.com) is a leading maker of engineered aluminum products for cars and jet engines. Activist investment firm Elliott Management owns 13.2% of Arconic and wants it to cut costs and boost profit margins. To avoid a fight for control of the company, Arconic has placed three Elliott representatives on its 13-member board of directors. • The original firm began operating in 1888 as the Pittsburgh Reduction Co. • Name changed to Aluminum Company of America in 1907, and to…