Tomahawk, WI 11/26/2013 (BasicsMedia) –  The market has responded well to Alcoa Inc (NYSE:AA) stock due to many factors. After all, this is one of the largest manufactures of metal and aluminum based products in the world. However, the good response from the financial market has not hidden one important fact regarding Alcoa; the fact that compared to its peers, it boasts of poor levels of growth. This is rather strange for a company with a market capitalization that surpasses $10 billion, and more is expected of Alcoa, considering that it enjoys enviable levels of stability in comparison to some of its largest rivals.

The reason for the lukewarm acceptance that investors show towards Alcoa is based on their frustrations at the company’s inability to make the most of its unique position. Alcoa is one of the fewest companies in the world whose products are used globally in the production of aircraft, packaging, construction and building, automobiles, oil and gas, commercial transportation, consumer electronics, defense and industrial applications, among other vital sectors in any economy. Alcoa Inc (NYSE:AA) has the best chance to increase its revenues and report higher profits.

Alcoa Inc (NYSE:AA) takes part in many sectors of the economy, including fabrication, mining, technology, smelting, refining, and recycling. If for no other reason, Alcoa should be doing much better than it is reported to for the simple fact that it operates in 31 countries spread in all continents across the world. Currently, it boasts of more than 61,000 employees working across all its offices and manufacturing plants all over the world. Lately, the company has made a number of acquisitions, which is yet one more reason that Alcoa should be doing well than it has reported thus far.

Alcoa Inc (NYSE:AA) has indicated that it may be forced to cut its smelting capacity by as much as 11% in the next fifteen months, or so. Currently, the company smelts close to 460,000 metric tons of aluminum, but it may have no choice than to close a few of its smelting plants in the next year or so. A number of financial advisors believe that this move is necessary, and are fully in support of Alcoa should the company carry out such a move. The prices of aluminum across the world are not doing so well. They have fallen by as much as 33% from the peaks they attained in 2011.

All financial advisors that support Alcoa’s decision to reduce its smelting capacity by as much as 11% cite the fact that this will put the company in a solid place financially. They believe that the company’s EBITDA for the 2014 fiscal year will improve by not less than 3%, while it will see an improvement in its diluted shares by not less than 9%. Whichever way you look at it, Alcoa Inc (NYSE:AA) has not been doing as well as it should. As a result, the company has to make tough choices, and the closure of around 11% of its aluminum smelting plants, is a move in the right direction.

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