Alcoa reported a Q4 2009 loss of $277 million loss, on lower sales and higher costs. Losses narrowed from a year ago when they were $1.2 billion dollars.

Pro forma operating profits were 1 cent, missing analysts estimates of a 6 cent profit, and begging the question of HTF can you report a per share profit on a quarter billion dollar loss? The analyst and accounting industries should hang their head in shame, and reach for a wakizashi to perform Seppuku, being the only honorable thing to do after the great shame brought upon their houses.

US futures dropped after the miss, and have weakened this morning:


Alcoa Drops After Quarterly Earnings Trail Estimates
Edmond Lococo
Bloomberg, Jan. 12 2010

Category: Analysts, Earnings

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

11 Responses to “Alcoa Stinks the Joint Up, Pressures Futures”

  1. Dennis says:

    Seppuku would be too good for these weasels . . .

  2. Tracy L. Knudsen says:

    Selective strength has been plaguing the market since Jan. 4’s decisive rally. Since that advance, the onus is on the bulls to produce a strong rally from the recent sideways to slightly higher churning that has taken place in recent days in order to lessen the probabilities of a retracement of the Jan. 4 rally. To-date, however, the bulls have failed to produce a strong follow up advance and evidence suggests that chances of a correction could be increasing.

    Typically, rallies based on increasingly selective strength are especially vulnerable to correction. A deterioration in the % of Stocks Above their 10-DMA preceded the correction into the July 2009 low as well as the short-lived correction that ended in late Oct./early Nov. of last year.

    Short term sentiment is also a concern regarding the near-term direction of the market. For example, the intraday put/call ratio, at 0.45, is reflecting a high level of bullish sentiment among short term traders. This is the lowest reading since Oct. 15, two days prior to the mid-Oct. rally peak. Oftentimes, it is during periods of high complacency in regards to the potential for a decline that investors are taken by surprise by a sudden move to the downside.

    The bottom line is signs of short term deterioration continue to develop.

    In summary, while new buying at current levels could carry some degree of risk given the signs of deterioration in the quality of the advance, any correction is expected to offer a potential buying opportunity, as there is currently no evidence to suggest the market’s primary uptrend is in danger of reversing.

  3. Init4good says:

    ‘and reach for a wakizashi to perform Seppuku, being the only honorable thing to do after the great shame brought upon their houses’

    LOL…funniest thing I’ve ever read here…..

  4. mathman says:

    Interesting take here:


    BR: I met Jim at a conference in Vancouver — found him to be a fun guy, full of insights and laughter to go with his dark brooding.

  5. red_pill says:

    op vs net profits?

  6. V says:

    It’s not altogether surprising if financial firms can get away accounting trickery, that firms in the ‘real’ economy will have a go too.

  7. Mike in Nola says:

    You been watching Shogun again, Barry?

  8. Greg0658 says:

    I extracted $108 from recycled alum last year .. but I didn’t log in to brag .. was wondering if Alcoa was a major supplier in the Budweiser chain of manufacturing .. or for 1 reason or another devested of that changeup?

    Again I’m looking for transparency in this info age .. resumes & books to deduce allegiances (to other than $s) .. is a world coming when a WTO will end war because assets desire to stay safe?

  9. Trainwreck says:

    “In 1516, Muira Yoshimoto committed suicide by cutting off his own head, something that got him a gazillion style points (he was still dead, however).”

    Now that is just bad ass.

  10. Gatsby says:

    “HTF can you report a per share profit on a quarter billion dollar loss?”

    ROTFL…Priceless, Quote of the Year so far.

  11. DiggidyDan says:

    Alcoa should change their primary focus from aluminium to a different metal. . . cuz apparently they have a couple of HUGE BRASS ONES they could offload. . .


    Thank you, thank you, I’ll be here all night. Tip your waitresses.