Investors hoping to ride the climate change bandwagon have had a roller coaster ride over the past two years. Greentech stocks soared with the oil spike in 2007 and 2008, then crashed with stock market and commodity price declines in 2009. Since then, some of the most obvious stock plays have strongly rebounded. Many solar stocks have posted high double-digit gains since rebounding off year-to-date lows in March 2009.

The leading solar panel manufacturer, FirstSolar (NASDAQ: FSLR) has appreciated by 45% from lows of near $100 to a closing price of $154 on October 14. "I wouldn't be stepping into buying these stocks right now," says Pacific Crest senior analyst Mark Bachman, who covers solar stocks. Still, he rates FirstSolar as a market perform and considers it the best solar stock at present on his coverage list.

Alcoa (NYSE: AA) surprised the market this afternoon by posting its first quarterly profit of the year.

The company credited recent cost cutting measures as the main reason for its profit of $77 million during the quarter (75.8% lower than the same period last year), or 4 cents per share excluding certain items. This was a nice surprise to Wall Street, which had expected to see the company show a loss for the quarter of 9 cents per share.

Within the past year, the stock price of Alcoa (NYSE: AA), a mega aluminum producer, has gone from a high of $44.78 to a low of $4.97. Although, during the past few weeks, things have perked up. In fact, yesterday Alcoa's stock price surged 17% to $6.40.

The reason? Alcoa was able to drum up interest in its recent financing. In all, the company raised $1.3 billion in stock and convertible notes. Keep in mind that Alcoa expected to raise $1.1 billion.

In the aftermarket, the trading of the new securities was robust -- which certainly delighted traders.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

Growth stock expert Mark Skousen looks to the commodity sector for a favorite idea for 2009. In his specialty advisory service, The Turnaround Trader, he explains, "While the market continues to be volatile, we believe Freeport McMoRan (NYSE: FCX) offers an opportunity for profit."

Skousen continues, "Industrial commodities have been beaten down in the face of a deep, global recession. Aluminum was $1.50 a pound a year ago, and is now down to 66 cents. Copper was more than $4 a pound last year, and recently fell to $1.40.

"But the outlook for commodities is changing quickly with all the talk of bailouts, stimulus, and easy money.

"Aluminum, copper, and other base metals have risen recently on the news that President-elect Barack Obama has pledged 'substantial' spending to fix and add buildings, roads and bridges as a way to revive the economy.

"And then there's China. The world's largest emerging market recently committed to stimulating domestic growth, and announced plans to purchase 1 million tons of base metal for about $3 billion. China's massive stimulus plan, combined with Obama's, could be enough to reignite the commodities boom.

The current earnings season officially got under way last night as Alcoa (NYSE: AA), the first DOW stock to report, released its third quarter numbers, and the results were not too pretty.

Going into last night's earnings release, analysts had been expecting Alcoa to earn 53 cents per share in its third quarter, but the company reported much lower actual numbers -- 33 cents per share for the quarter, or $268 million. Weak demand, coupled with falling aluminum prices were the main culprits during the quarter.

During the same period last year, the company showed earnings of 63 cents per share, or $555 million.

Since hitting an all time high in July, aluminum prices have been pulling back sharply over the past few months, and have dipped around 32% from the highs set over the summer.

The company also announced that it would be trying to preserve its cash by suspending its stock buyback plan. Previously, the company had approved a 25% buyback of its outstanding stock, and had already purchased 12%, but will stop the buying for the time being.

Shares of the company are trading down a little over 3% this morning in the premarket.

Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.

As the second half of the year begins, the bear market has nervous investors looking for any sign of a shift in the direction of the market. When the new earnings seasons kicks off Tuesday, Alcoa Inc.'s (NYSE: AA) second-quarter results may offer the first glimpse of what to expect going forward.

Pittsburgh-based Alcoa has missed earnings estimates in just two out of the past five quarters. When the leading aluminum producer reported first-quarter results back in March, its net income of 44 cents per share fell short of the consensus of analysts surveyed by Thomson Financial by four cents, and were down from 79 cents per share in the same quarter of 2007. For this current quarter, analysts expect earnings of 68 cents per share on $7.4 billion in revenue.

In recent news, power supply issues led Alcoa to idle its Rockdale, Tex., facility. The company announced a deal for bauxite mining and alumina processing in Vietnam. Alcoa was named one of the world's most ethical companies and recognized for the best safety performance in its industry. And back in early May, Klaus Kleinfield became Alcoa's president and CEO. For analyst upgrades and downgrades, as well as other news that could influence Alcoa's results, see BloggingStocks' Alcoa coverage.

Alcoa's long-term earnings per share growth forecast is 21.6%, which is less than the metals and mining industry average but better than the S&P 500. The consensus recommendation from analysts is to buy Alcoa, and has been for more than 90 days. The share price has been falling from a recent high of $44. 77 in mid May, and closed at $32.78 on Friday. Shares are down 10.3% year to date.

Bellwether General Electric (NYSE: GE) also reports later in the week, and may also help set the tone for the quarter and the rest of the year.

Visit AOL Money & Finance for more earnings coverage.

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and who have a competitive advantage in established markets, preferably with a favorable global trend as a support. And with the above in mind, Reliance Steel is worth an evaluation.

First, don't think of Reliance Steel & Aluminum (NYSE: RS) as a steel company; think of it as a 'diversified' metal processing services company.

Reliance supplies metal process services and also manufactures metal products for the construction, transportation, aerospace, manufacturing, and semiconductor industries.

Alcoa has agreed to sell its packaging and consumer businesses to New Zealand's Rank Group Limited for $2.7 billion, the company announced Wednesday. Alcoa (NYSE: AA)'s shares gained 37 cents to $37.38 in Wednesday afternoon trading.

Alcoa's packaging / consumer unit generated about $3.2 billion in revenue and $95 million in after-tax operating income in 2006, or about 3% of operating income, the company said.

Alcoa said it's also seeking to sell its Reynolds Wrap, consumer products, flexible packaging, and plastic / aluminum packaging closure units in order to more fully concentrate on its mining / aluminum production business.

Don't think of Reliance Steel & Aluminum (NYSE: RS) as a steel company; think of it as a 'diversified' metals company, and one that's on sale, at that.

Reliance supplies metal process services and also manufactures metal products for the construction, transportation, aerospace, manufacturing and semiconductor industries.

Reliance is a compelling play now primarily for three reasons: 1) its demonstrated proficiency servicing the aforementioned sectors, 2) the continued strength of the international economy, and 3) the high-end nature of the company's metal products. That last point provides an element of safety for investors: don't think of RS as a classic "basic steel for building foundations" company. Reliance has a multitude of products that are outside the classic (and very cyclical) office building segment. A telling fact: Reliance serves more than 125,000 customers.

Further, the argument among some analysts that above-average prices for steel and aluminum are not sustainable is not supported by current global economic conditions. True, due to the slumping auto industry, U.S. demand may drop, but demand from China and from Asia, in general, remains strong, and Latin America is expected to hold up its end of the bargain in 2008. The Reuters F2007/F2008 EPS consensus estimates for RS are $5.32/$6.02.

The First Call mean rating for RS is: Buy. [8 firms.] Mean 2007 target: $67.50. [high: $77, low: $59.]

Further, investors can receive an added savings as a result of Thursday's market sell-off: RS's shares closed Thursday down $1.60 to $56.75. RS's low p/e of 10 also reduces the stock's risk/return ratio, and it's a modest price to play for such a well-run company with in-demand products.

Stock Analysis: Reliance is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from RS's shares. Sell / Stop Loss: $39.

Today Alcoa Inc. (NYSE: AA) announced some restructuring plans that will trim down (SELL) some under-performing consumer packaging and automotive castings divisions. It will be taking some charges to the tune of $845 million as well, and intends to gear up for expansion into higher margin areas. Alcoa also said it raised cash by selling its 7% stake in Chalco, the Aluminum Corp China ADS (NYSE: ACH) and bringing in $2 billion dollars on what was initially a $200 million investment -- "A ten bagger."

It is this latter decision that is not smart, and without further explanation from management I have to question selling a winner. If you look at all of the things that Alcoa did in the last 10 years you will find that the Chalco investment was the smartest, and more importantly, the most profitable, thing it has done. For many years Alcoa stock has been adrift. Since it sold the stock it has only gone up further and as I write these words and look at the price now, ACH is trading up over 5% more to $75.70.

Last December, over 100 stocks were featured in our Top Picks for 2007 report. Now, at mid-year, we turn to the 20 advisors whose picks showed the strongest gains to get an update on their previous picks, as well as a new favorite stock for the second half of the year.

Mark Skousen, editor of Forecasts & Strategies and host of the July 4th investor think tank FreedomFest, chose Aluminum Corp. of China (NYSE: ACH), which rose 45% as of 6/1/07. Here is his original recommendation for ACH and his new favorite stock for the rest of 2007.

Updating his earlier selection, the advisor asks, "What's the future of a stock that has doubled in the past year, and up over 40% this year? I am tempted to take my profits and go elsewhere.

"But demand for alumina and aluminum remains strong. Aluminum prices have been flat for the year, but have more than doubled in five years. The company, commonly known as Chalco, is the world's number two alumina maker, and it beat forecasts with a 44% rise in second half earnings.

"The giant producer intends to enhance its global competitiveness and focus on expanding capacity and further acquisitions this year, aiding the nation's hunt for raw materials to feed a rapidly growing economy (8-9% GDP annual growth). Chalco is also China's largest aluminum maker.

"It reported a net profit of 5.0 billion yuan (US$645.7 million) for the six months ended December, bringing yearly profit to 11.745 billion yuan last year versus 7.02 billion yuan in 2005. Overall, I think Chalco can increase in price, but just in case we are wrong, let's set a protective stop of $30 a share, and sell if it hits this level on the downside."

See all 20 stocks the advisors picked for the second half of 2007.

Alcoa (NYSE: AA) has been trying to buy rival aluminum company Alcan (NYSE: AL) for several months. But it now appears that the hunter may become the hunted.

Australian metals company BHP Billiton (NYSE: BHP) is considering making a bid for Alcoa. According to The Times of London, the value of the buy-out could be as high as $40 billion.

BHP can afford the purchase, but it comes with a very substantial risk. The company has a market cap of $194 billion. Alcoa's is $36 billion.

Any bid for Alcoa, however, will rest on the high price that the company can get for aluminum and growing demand for the metal. The price of the metal averaged $1.16 per pound last year. Over the six previous years, the price averaged $0.72. Global supplies are still tight.

Like all commodities, the price of aluminum could fall quickly. Production in China is up sharply, which could eventually put pressure on prices.

Buying Alcoa is only a good deal if aluminum prices rise and that can only go on for so long.

Douglas A. McIntyre is a partner at 247 Wall St.

This is a follow-up on one of my favorite companies. By any measure I can come up with, the Aluminum Company of China Ltd. (ADS) (NYSE: ACH) -- sometimes referred to as Chalco -- is one of the best stock buying opportunities on planet earth, short of having insider information and not getting caught. The numbers are so good that it is driving me nuts trying to figure out how this or any company could be so under-valued. I already own it and advised my readers to jump in at $22 about two months ago (see Chasing value: Aluminum Corporation of China ADS). Those that did have seen over 50% growth in eight weeks. Not bad!

Well, I would like to buy more but there has not been much of a dip. When it went to $26 per share I thought I would buy more if it dipped to $24. You know the drill . . . it keeps staying just out of my reach because I want a deal, I want deep value. So yesterday it closed at $32.93 after reaching a high of just over $35 earlier in the month. So is now the right time?

I keep asking myself what is wrong with this picture? What is it that I do not see? If I buy more of this stock am I going to get broadsided by some accounting scandal? Have they been cooking the books? It is just not possible to be so cheap. When I was crowing about it before I thought it was a screaming steal at $22.98 and I was right. But looking at it today, it still seems like it is.

MAJOR PAPERS:

• The Wall Street Journal reported that CDW Corporation (NASDAQ: CDWC), a $6B market cap technology retailer, is being hotly pursued by a number of private equity firms including Madison Dearborn Partners.
• Avaya Inc (NYSE: AV), a telecommunications equipment maker, is said to be interested in selling all or part of the company, and is in talks with private equity firms and strategically interested companies, the Wall Street Journal also reported.

OTHER PAPERS:

• Dr. Ronald Krall, the medical director for GlaxoSmithKline plc (NYSE: GSK) told the New York Times that some of the 4,450 patients enrolled in the drug trial for Avandia have dropped out due to safety concerns
• Norsk Hydro ASA (NYSE: NHY) is looking at the possibility of making an offer for Canadian aluminum producer Alcan Inc (NYSE: AL), Globe and Mail reported.
• The Sydney Morning Herald reported that mining company Rio Tinto plc (NYSE: RTP) has hired Deutsche Bank AG (NYSE: DB) to advise it on a possible bid for Alcan.

WEBSITES:

• According to a report from Chinese-language Commercial Times and noted in DigiTimes, Quanta Computer has reportedly received an order for five million iPhones from Apple Inc (NASDAQ: AAPL) and that the 2nd generation device will offer "a different outer design to fit different markets."

Aluminum giant Alcoa Inc. (NYSE: AA) is taking a big risk with its $73.25 offer for smaller rival Alcan Inc. (NYSE: AL).

For one thing, the $73.25 offer for Alcan, represents a 32% premium over Friday's close of $61.03. Of course, Alcan's stock is up 23% in pre-market trading.

The premium seems like a bit much. Alcan's 52-week high is $61.19. As a matter of fact, Alcan's stock hasn't traded much over $60 over the last five years

Alcan's revenue in the last fiscal year were $23.6 billion, Alcoa's $30.3 billion. Together, they would be much better off than they would be apart.

Though Alcoa is growing now and had $26.2 billion in revenue in 2005, there is fierce competition from overseas rivals including Australia's BHP Billiton Ltd. (NYSE: BHP) and Rio Tinto Ltd. (ASX: RIO), so the combination makes sense strategically.

The success of this deal may come down to how much the companies can take out in duplicate costs and that is easier said than done.

Douglas A, McIntyre is a parter at 24/7 Wall St.