Question 1: What's the story with Alumina (AWC)? A humongous dividend yield of almost 10% is set against a relatively modest decline in the past 12 months. On the face of it, it seems a good deal. Do you agree?
Answer: A great question! Alumina (AWC) is a bit of an unloved stock. It is the 40% owner of the AWAC joint venture, and tends to get knocked around with the performance of Alcoa in the USA. There is some concern about the price of alumina (it has been in a downward trend), and specifically, AWC’s growth prospects.
According to FNArena, the brokers analysts have a target price of $2.53 on the stock (range $2.10 to $3.10). This is 5.4% higher than the last closing price of $2.40. There is 1 buy recommendation and 4 neutral recommendations.