JJU

iPathA Series B Bloomberg Aluminum Subindex Total Return ETN

53.0051
USD
1.93%
53.0051
USD
1.93%
50.0000 84.1600
52 weeks
52 weeks

Mkt Cap 11.57M

Shares Out 218.31K

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This Net Zero Carbon Stock Is Beating The S&P 500 By 20%

Don’t worry if you’ve never heard of ELYSIS – most investors haven’t. But now’s the time to put it on your radar because it’s set to have a massive impact on the global drive toward a net-zero carbon economy. ELYSIS is the acronym for a disruptive technology that eliminates all direct greenhouse gas (GHG) emissions from the process of smelting aluminum, a critical component widely used in construction, aircraft, and even fuel-efficient high-speed trains. It’s also the first technology ever that emits oxygen as its by-product. But critically, this technology isn’t just environmentally friendly. ELYSIS can also help lower the cost of producing aluminum, allowing companies that rely heavily on the metal to make their products at a much lower cost. It’s hard to overstate the potential impact of ELYSIS as it becomes more widely adopted. Aluminum is ubiquitous in so many types of consumer products that it could have global reach. We’re talking about disruption on the scale of the internet. This breakthrough is the brainchild of a Montreal firm that has attracted backing from Apple Inc. (AAPL). And while the brainchild behind ELYSIS is privately held, I’ve identified a great way to invest in this technology with a firm unveiling the “refinery of the future.” This stock is up 66.8% over the past year compared to -3.56% for the S&P 500 as of this writing. It’s a storied leader in metal production that’s absolutely crushing the market with plenty of upside still ahead… You Already Use This Aluminum Provider More Often Than You Think An acronym for Aluminum Company of America, Alcoa Corp. (AA) was founded in Pittsburgh in 1888 by Charles Martin Hall, who had discovered how to smelt aluminum not long before. Today, Alcoa is the world’s eighth-largest producer of aluminum, with operations in the United States, Caribbean, Africa, Australia, and more. Business has only grown over the years, as aluminum has been replacing stainless steel in many industrial applications. More recently, Alcoa has shifted its focus to better margins and is benefitting from the fact that rising energy prices in China and Europe have decreased production – the cost of power accounts for about half of the cost of smelting aluminum. The development of ELYSIS tech came about partly because of Alcoa, which entered into a three-way partnership with Apple and Rio Tinto Ltd. (RTNTF), an overseas aluminum producer, to help with R&D and commercialization costs. That means they’re going to be among the first to benefit from this technology, and that has enormous benefits for American consumers because we use way more aluminum than we realize. Due to its strength, low weight, and resistance to corrosion, aluminum is the metal of choice in the tech industry. It’s a key part of smartphones, tablets, laptops, and much more – which explains why Apple is so interested in cheaper and cleaner aluminum. This year, it bought the first batch of commercial aluminum from ELYSIS for use in the iPhone SE model of smartphones. Aluminum is both lighter and stronger than steel, making it a natural choice for the aviation industry as far back as the Wright Brothers. It used aluminum for the engine block of the Kitty Hawk, the world’s first powered aircraft. Similarly, Boeing Co. (BA) has been using mostly aluminum since the 1930s for its planes, and today’s popular Boeing 737 aircrafts are 80% aluminum. Regular and high-speed rail also uses aluminum to increase strength while cutting weight and thus fuel costs. Today, practically everything in a passenger rail car is made of the metal, which allows for a 35% weight reduction compared to a stainless-steel construction. Even the auto industry is switching from stainless steel to aluminum, with Ford Motor Co.’s (F) best-selling F-150 pickup truck now sporting an aluminum body. It’s in tin foil. Cans. Kitchen utensils. Window frames. Antennae. The list goes on. All this goes to show how aluminum technology like ELYSIS impacts everything in our lives. Of course, ELYSIS isn’t the only thing Alcoa is working on. In Australia, Alcoa just got the green light for a new technology that heats up the last stage of aluminum processing with electricity instead of by burning natural gas. This will cut carbon emissions and reduce water use. No wonder they call it the “refinery of the future.” Why Alcoa Is a Must-Buy Right Now To be sure, Alcoa’s per-share profit growth has been weak in the last few years. But the firm is now clicking on all cylinders. In the most recent quarter, sales grew a very robust 40%, and earnings per share were off the chart – rising some 685%. The stock price dropped after the company’s April 20 quarterly report as Wall Street got spooked by higher-than-expected inventory and lower sales. Alcoa, however, expects this to be a temporary blip caused by Russia’s invasion of Ukraine and sees aluminum demand growing by 2% in 2022. Even so, Alcoa is crushing the market this year. It’s up over 5% year to date compared with a 15.91% decline for the S&P 500, as of this writing. That makes it the ultimate backend play on the tech-centric net-zero carbon economy with a stock you can count on for the long haul.

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