He also keeps an eye on the bigger picture, and looks for companies in what he considers the right part of their cycles. Hall likes the outlook for Alcan's sector right now. Demand is steady, while aluminum supply is constricting. And Alcan pays the philosophy more than just lip service, he says. While Hall doesn't obsess about timing the market, he does look for companies positioned at the right part of their business cycle, and he likes the outlook for Alcan's sector right now.
Demand is steady, while aluminum supply is constricting.
Aluminum smelting consumes vast quantities of power, and power costs in the Pacific Northwest have forced some Alcan competitors to go off line. Alcan has been and will be a huge beneficiary of that. You transport that stuff by pipeline, so if we're going to meet the power demand, these guys are going to be beneficiaries. They have a world-leading position in anything to do with pipelines. ShawCor is the kind of company that doesn't get much attention, partly because it's business strength means it has no need to court the markets, says Hall.