We are upgrading Alcoa to overweight from neutral and raising our 2006 EPS estimate to $2.15 from $1.88 because the market seems to be ignoring the strong aluminum price and the impact it will have on Alcoa's earnings and cash flow in 2006.

We believe that Alcoa's earnings will begin to reflect the strong aluminum price beginning with its 1Q 2006 earnings - particularly since several of the headwinds that affected Alcoa over the last two years, whether it be input costs or foreign currency, have stabilized.

Control of all three of these projects under one management team should lead to a more rational market.

If I were overweight because I ate too much, I would have far more of a complex. I would know if I just stopped eating and showed a little discipline I would be thin. But there's not a hell of a lot I can do about being short. You just gotta run with it.

To serve the human race
is to serve a neutral and peaceful leadership,
Petra Hermans

Nature is neutral.