Buy Alcoa shares - how to invest in Alcoa shares in Singapore

Investing in shares is becoming an increasingly popular activity around the world. Whereas in the past only the wealthy were interested in investing, now anyone can invest.

You don't have to be a millionaire and live in New York or Paris to become an investor. You can live in the remotest corner of Singapore and have an initial $10 to become a successful investor in the future. It sounds unbelievable, but it really is.

In this short article, we'll look at investing in Alcoa shares in Singapore. Let's take a look at the online option to buy shares, understand what an online investment platform is and what to look for when buying shares through an online broker.

Alcoa Corporation is an American industrial corporation and a major producer of primary aluminium and aluminium raw materials. The company is the eighth largest producer of this metal in the world. It owns seven operating bauxite mines located in different parts of the world, and is one of the largest producers of bauxite. Alcoa's production capacity provides eight per cent of the world's alumina market.

In 1886, Charles Martin Hall, a graduate of Oberlin College (Ohio), discovered aluminium smelting almost simultaneously with the Frenchman Paul Heroult. Hall came to the conclusion that by electrolysis of a cryolite-alumina melt, aluminium could be obtained as a by-product. This process, known as the Hall-Eru process, is today the only technology for the industrial production of aluminium and is used worldwide.

In 1888, Hall co-founded the Pittsburgh Reduction Company with Alfred Hunt, launching an experimental aluminium production plant on Smallman Street in Pittsburgh, Pennsylvania. In 1891 the company expanded and opened a new plant in New Kensington, Pennsylvania. In 1895 a third plant opened in Niagara Falls. By 1903, while Hall's patents were still in force, the company had become the only legal supplier of aluminium in the United States.

The company was renamed Aluminum Company of America ("Aluminum Company of America") in 1907. In 1910, the abbreviated name Alcoa was assigned to two areas where the company's main production facilities were located (one of the locations has now been renamed), and in 1990 Alcoa was adopted as the company's official name.

At the time of writing, Alcoa's share price was $31.32 (+318.91% year-to-date).

How to invest in Alcoa stock in Singapore with minimal start-up capital? Let's take a closer look below.

You can find out more about the company on the official Alcoa website
You can find out more about the company on the official Alcoa website

How to invest in Alcoa shares in Singapore?

Alcoa's initial public offering was in 1978.

Alcoa shares are traded on the New-York Stock Exchange (NYSE), where they are listed under the ticker AA.

In addition to the US exchange, Alcoa shares can be found on several other exchanges:

  • Mexican Stock Exchange (Bolsa Mexicana de Valores, BMV);
  • Frankfurt Stock Exchange (FSE);
  • Berlin Stock Exchange (Berlin Stock Exchange);
  • Stuttgart Stock Exchange (SWB);
  • Swiss, Austrian and London Stock Exchanges.

To be able to invest in Alcoa shares in Singapore, look for a brokerage company that works with the above stock exchanges and can give you access to an online trading platform to buy shares.

Select
Select "AA" ticker to find Alcoa shares on the platform

Choosing a reliable broker is one of the keys to your success in trading the stock market. To choose a good broker, consider the following things:

  • whether the broker has licences from reputable regulatory bodies granting it the right to engage in brokerage activities;
  • availability of a professional website with all the necessary information;
  • availability of feedback for consultation;
  • available trading conditions with a wide range of trading instruments;
  • available trading conditions with a wide range of trading instruments;
  • access to free training materials;
  • the speed of responding to requests;
  • low service fees;
  • various methods available for withdrawal of funds.

A popular method of investing in Alcoa is CFD trading, where you trade the difference in the share price between the opening and closing times. In other words, you need to be able to anticipate the possible rise or fall in the value of a stock in the market. You can only profit in this case if you correctly predict the behaviour of the stock price. Most online platforms allow you to use a "multiplier" option when selecting the type of CFD trading, by which you can extend the amount invested according to the multiplier you select. You can also choose a long-term investment in which you will receive dividends at a time that is specified in the investment agreement. This type of investment can be called a passive investment, but you should not expect instant income. This type of investment is used by investors who already have substantial capital to save money and earn returns in the future.

Investing in Alcoa stock is a good option. Despite the worldwide pandemic, Alcoa's share price has risen 318.91% in the past year, and that value continues to rise.

Information on Alcoa's current share price
Information on Alcoa's current share price

How to buy Alcoa shares in Singapore?

When you decide to invest in Alcoa Singapore, as we discussed above, you will first need to look for a broker. After analyzing the reviews and offers of services of all available brokers, choose your own. You will then need to register with their online trading platform. It is very easy to do, registration takes a few minutes and does not require complex identification at the beginning.

All you have to do is enter your email address as well as your first and last name.

Go through a simple registration process
Go through a simple registration process

After registering, you will see options for accounts that you can open. A free demo account will allow you to try trading on the platform with fictitious (training) funds without risking your own capital. The amount of play money can be turned over an unlimited number of times. Since this money is not your real money, you cannot use it other than learning from the platform.

Choose a trading account
Choose a trading account

A real account works in the same way as a fictitious one, but to start working with this account, you will have to replenish the deposit with at least $ 10. Top-ups can be made using the payment systems listed on the platform. Funds are usually credited to the account instantly, but the crediting time can last up to five business banking days.

Top up your account online
Top up your account online

How to start investing in Alcoa shares in Singapore?

So, the plan to start investing in Alcoa shares in Singapore is quite simple.

First, you'll research the market. Determine for yourself whether you are ready to invest in this company given its image, direction, quotes, etc. If it is a long-term investment, consider whether the product or service provided by the company will be in demand in a year or two. In the case of Alcoa, whose cars continue to hold their position as the best racing cars in the world, gives hope that the choice to invest in the company is the right one.

Next, you should look for a broker who will handle the stock of this company. You can now invest in Alcoa stock from almost any country as online investing is available. After monitoring brokerage companies that trade Alcoa shares, choose one that offers many quality instruments but offers moderate commissions for services rendered.

After registering on the platform of your chosen broker, don't forget to open a demo account. This is a great way to improve your skills.

Buying Alcoa shares
Buying Alcoa shares

By testing various methods of investing on a demo account, you will be able to develop your own trading strategy. Of course, even if your methods are successful, you will not be able to manage your funds on a demo account, but in this case the risk is zero.

Take a look at the Learning section. Investing is a whole science, covering the economic laws of trading, the ability to understand a company's financial statements, the ability to analyse the behaviour of share prices, to understand the impact of global economic and political processes on the fluctuations of share price charts. Therefore, it is highly unwise to neglect training. Video tutorials and printed materials are available to familiarise you with the trading platforms, and we strongly recommend that you work through them.

Alcoa share trading platform online
Alcoa share trading platform online

Pay attention to the technical indicators available: they will help you analyze stock prices. Previously developed and scientifically proven valuation methods will not be superfluous. Choose the one that best suits your needs and use it in your work.

Follow the news and stay up-to-date on all political and economic developments in your country and around the world, as this also affects share prices.

Alcoa has faced some challenges in 2020. For 2020, the company's revenue fell 11%, Adj EBITDA fell 30% and EPS fell from -$0.99 to -$1.16. However, Alcoa's situation has started to improve since the second half of last year. In the fourth quarter, the company's revenue rose by 1.1% and Adj EBITDA increased by 4%, compared with the results for the same period in 2019. EPS reached $0.26 for the latest quarter, versus -$1.17 a year earlier.

Alcoa maintains a moderate level of debt, with borrowings and pension/OPEB liabilities at $4.88bn. Last year, the company successfully placed a $750m bond issue with a 5.5% coupon to 2027. This helped the company improve its liquidity position to $1.6bn as of end-2020. Net Debt/EBITDA ratio is 3x, which is an acceptable level. The company's management also plans to reduce its net debt level to $2bn-$2.4bn over the next 1-3 years.

Roy Harvey, Alcoa's CEO, forecasts that global aluminum consumption in 2021 will increase by 7% YoY. It will reach 67 million tonnes, the highest growth since 2014. International Aluminium Institute (IAI) Secretary General Miles Prosser also noted that the organisation expects aluminium consumption to grow by at least 6% in 2021. Consumption in China is expected to increase by 5% from 2020 and 10% outside of China due to recovery growth.

Alcoa's share price currently stands at $31.39, up 323.39% from the same period last year.

Investing in Alcoa is an excellent choice. We hope that you will soon have a positive experience and become a successful investor in the market.

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