Double Your Money from the Laughing Stock of the Market

[Ed. Note: Back on January 15th, Greg Guenthner alerted readers to Alcoa’s breakout. He now feels Alcoa can double your money as it begins another rally… Read on…]

The blockbuster trades take the most guts.

As a dude by the name of Joseph Campbell once said, “The cave you fear to enter holds the treasure you seek.”

Damn straight…

And today we’re going to see if you’ve got the guts to pull the trigger on a trade that could double your money by this time next year. I’ll tell you what it is in just a minute…

You have the perfect opportunity to play the new breakout in Alcoa stock right now…

It’s so tempting to run with the herd. And sometimes, it can produce fantastic trades. You ride the wave of hype and hope — and cash out somewhere along the way when the party starts getting a little crazy.

Then there are the “hate trades”. These are the stocks that your worst enemy wouldn’t wish on you. They’ve been heaved out of a third-story window, run over in the street, and given last rites. Not even the most diligent value investor can find a pulse…

But listen, fortunes are made from these trades. They’re the trades that can make your year — or even pile up an entire decade’s worth of gains. If you have the guts to grab these potential turnarounds in the early stages, you could easily ride some of the biggest waves you will ever see. And that’s what we’re looking at today with one of the most hated stocks out there. I’m talking about Alcoa.

Let me explain…

Yes, in late September 2013, Alcoa Inc. was dropped from the Dow Jones Industrial Average. The aluminum manufacturer had been a Dow component for 54 years. But its low share price had become a bit of a problem for the Dow (which, unlike the S&P 500, is a price-weighted index). That means that toward the end of its run, even a major move in Alcoa shares barely registered on the Dow. In that sense, the company had become irrelevant.

So Alcoa got the boot. The stock was already considered a joke. It never beat earnings expectations and shares always seemed to find lower ground. No one took the stock seriously. And that’s the best thing that ever happened to it…

Alcoa Inc., 2008-2014

Alcoa’s expulsion was the final straw for this stock. Every last bull was chased from the barn. The running of the bulls was just the spark the stock needed to begin a new rally. September 2013 was the bottom. From there, a massive change in trend helped carry this stock to gains of more than 102% in a little more than a year…

I alerted you to this move back on January 15th. I said that unlike many stocks on the market, Alcoa had yet to come close to its pre-financial crisis highs. The breakout was changing that fact. And even after its massive run, this stock is nowhere near its 2008 high water mark north of $40…

Now the good news…

I believe Alcoa’s rally to its old 2008 highs begins today. Even if you missed the first signs of this massive trend change last year… Even if you failed to buy when I wrote you again back in January… And even though AA has already handed patient investors more than 120% in just 14 months… You have the perfect opportunity to play the new breakout in Alcoa stock right now… and potentially double your money over the next year.

Settled down yet? Good. Now let’s see if you have the guts to make the right move…

 

Greg Guenthner
for The Daily Reckoning

P.S. By the end of 2015, AA could be $35. That’s gains of more than 100% from today’s prices. If you want to cash-in on the biggest profits this market has to offer, sign up for my Rude Awakening e-letter, for FREE, right here. Don’t miss out.