Throughout the semester I have been evaluating/following CENX (Century Aluminum) and I have come to the conclusion that while their stock is more volatile than their larger competitor (Alcoa), Century does appear to be a strong company, taking initiatives (divestitures, stock for debt swap, using site selection for future plant locations to achieve lower costs, etc) to increase competitiveness in the market.
On 8/31 (the date of my first post), CENX stock high was $12.18...today, Friday Dec 4th, CENX's high was $10.88, closed at $10.34.
I believe this company will continue to gain strength and is an attractive company for investors.
Friday, December 4, 2009
Thursday, December 3, 2009
CENX Stock Jump
Century closed on Wednesday, December 2nd, at $10.86 due to price jump in aluminum. This is the highest close since October 19th when CENX closed at $10.90. The Motley Fool released an aritcle on the 2nd listing Century as one of tomorrow's monster stocks (see link to article below)....I believe good things are in store for the current (and potentially near future) investors of Century Aluminum.....still kicking myself for not investing back in March when I first wanted to!
http://www.fool.com/investing/general/2009/12/02/tomorrows-monster-stocks.aspx
http://www.fool.com/investing/general/2009/12/02/tomorrows-monster-stocks.aspx
Monday, November 30, 2009
CENX Stock
Not alot of change in the ending price of CENX from Friday, Nov 20th (closed at $9.89) to Friday, Nov 27th (closed at $9.74)...down 1.5%. However, as the article below states, with the rise in Europe & Asia aluminum premiums, N. American firms (like Century) should see increased demand in overseas markets. Read the full article at http://metals.about.com/gi/dynamic/offsite.htm?site=http://www.amm.com/
If the increase remains, I believe the stock price for CENX should see some spikes very shortly...but as a disclaimer, I would like to say don't bet the farm on my presumption.
If the increase remains, I believe the stock price for CENX should see some spikes very shortly...but as a disclaimer, I would like to say don't bet the farm on my presumption.
Monday, November 23, 2009
Century Culture
Per Century Aluminum's online brochure, the company's culture is as follows:
-entrepreneurial, flexible structure and operating styel
-quick decision making
-emphasis on creativity
-partnership spirit - with our colleagues inside and outside the company
-honest, ethical business dealings...highest respect for health, safety, and environment
-broad international experience
http://www.centuryaluminum.com/images/CABro.pdf
-entrepreneurial, flexible structure and operating styel
-quick decision making
-emphasis on creativity
-partnership spirit - with our colleagues inside and outside the company
-honest, ethical business dealings...highest respect for health, safety, and environment
-broad international experience
http://www.centuryaluminum.com/images/CABro.pdf
Tuesday, November 17, 2009
CENX Amends Indenture of Debt
On Friday, November 13, CENX announced it was successful in completing the solicitation of consents to amend the indenture governing a portion of the company's notes to modify certain events of default relating to certain bankruptcies and insolvencies.
I have seen this in recent filings, and even in the company I work for, where the state of the economy has left many companies nearing defaults on covenants. The need for more "relaxed" covenants is growing and growing as the economy has still not fully recovered.
I have seen this in recent filings, and even in the company I work for, where the state of the economy has left many companies nearing defaults on covenants. The need for more "relaxed" covenants is growing and growing as the economy has still not fully recovered.
Allocation of Resources
As stated in Century's 10-Q filing, their Helguvik project's cost, scope and schedule is currently being evaluated. Spending has significantly been reduced and cannot be certain when or if it will restart major construction and engineering activities or even complete the project.
This relates to building capacity in Iceland to take advantage of reduced operating expenses related to heating/energy costs. If the decision is made to discontinue the project...the company has already spent through 2008...$83 million and projected spending for 2009 is in the range of $25-$30 million...that would be a very difficult decision to make, but I guess if managment doesn't see benefits panning out, it is best to exit.
This relates to building capacity in Iceland to take advantage of reduced operating expenses related to heating/energy costs. If the decision is made to discontinue the project...the company has already spent through 2008...$83 million and projected spending for 2009 is in the range of $25-$30 million...that would be a very difficult decision to make, but I guess if managment doesn't see benefits panning out, it is best to exit.
Tuesday, November 10, 2009
Quarterly Report Filed
On Monday, Nov 9, Century filed their quarterly report. Noted in the quarterly report was the commencement of an exchange offer that occurred on Oct 28, which they issued 11,365,693 shares of C/S in exchange for $127.9 million debt. Net income for the quarter was reported at $40.1 million, on sales of $228.7 million...net income was a result of a $57 million gain associated with the exit of their long-term power contract at the Hawesville plant. Even though this wasn't anything new, CENX stock ended on a good note...closing at $9.48 after closing the prior week at $8.99 (5.5%). The increase was more than likely not related to the filing of the Q, but due to market conditions, Alcoa also closed Monday on a high note at $13.34 after closing the prior week at $12.89 (3.5%).
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