ARNC - Arconic: Not Delivering Upon Its Promises
Shares of Arconic (ARNC) have been a meaningful underperformance in recent times, despite a great positioning (in theory) and involvement of a reputable activist investor.
The plan was simple. By splitting up the old Alcoa (AA) into a commodity like business, which continues to be named Alcoa, and creating a value-added producer in the name of Arconic at the same time, a lot of value should be created for investors. The investment community at large was betting on Arconic over Alcoa from the spin-off going forward, but how has this bet