Sovestor007's blog

When there is blood on the street (read “Wall Street”), there are always professional vulture investors (the savvy hedge funds, private investment companies, investors, speculators) who are watching and moving fast to grab distressed assets. Capitalizing on market meltdown is not new thing on either Wall Street or any other market in the world.

Aluminum Corp. of China Ltd. (ACH), also known as Chalco is a global powerhouse. Chalco is easily qualified as global aluminum powerhouse; consider these business facts:
• Chalco is the third largest aluminum producer in the world after acquiring Baotou Aluminum for 14.7 billion Yuan ($1.9 billion). Earlier this year, Chalco also bought Lanzhou Aluminum and Shandong Aluminum Industry.
• Chalco is China’s only producer of alumina and the largest producer of primary aluminum

For the past three months, the credit market has been hammered hard due to mortgage-backed securities (MBS) valuation collapse and liqudity crisis that are still on-going at this moment globally. This has negatively affected performance of DJIA and S&P 5000 as well as global stock indexes. Many companies big and small that have exposure (slight or large, in many cases no relationship whatsoever) to the MBS market OR have immediate needs to raise capital in the credit market got hammered. Commercial paper market now is also start to be affected as well.