AL-NOT-CAN

AL-NOT-CAN

It turned not as bad as I expected, although I had a hard time to determine what to do with it. In hindsight, I should have taken AA’s poor results more seriously and exited my Alcan position. Having said that the results are not disastrous, valuation remains modest and reasonable, aluminum price continues to be robust, and we have not seen any synergies from the recent acquisition yet. Although the price fell only 6%, the market probably over-reacted. The stock probably will drift from here and downside risk probably will be limited. On the other hand, reasons to take on this position pretty much disappeared in the near term, and the stock is unlikely to do anything until next quarter, if, only if it is able to deliver a better results. I am torn again here and likely end of doing nothing.

TEK

On the other hand, I add a bit of TEK in front of its quarter, and I am pretty sure its quarter would be much better than AL-NOT-CAN’s and we should have a four handle in next few months, a 10%-15% pickup.

GCD

Sold position in GCD as it has gained more than 45% since purchased in September. Again there might be a couple of bucks left on the table, but I am happy with 45% in few months. I would like to replace with CHM. I submitted a bid today at 31.5 and was not filled.