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On Tuesday evening, Dow component Alcoa – a/k/a Aluminum Company of America – kicked off the 3Q earnings season, as always.  Its results were atrocious, with the company losing $143 million versus a $172 million profit a year ago.  Worse yet, management guided down its 2012 global aluminum demand growth estimate from 7% to 6%; an ominous sign, particularly as it cited the weakening Chinese economy as a primary factor.

However, HAVE NO FEAR; as “excluding one-time items,” the company earned a whopping $0.03/share, compared to “EXPECTATIONS” of breakeven.  HAPPY DAY, a $9/share stock at an earnings run rate of $0.12/share – yielding a P/E ratio of 75…

Alcoa Kicks Off Earnings Season with a Beat – CNBC

As a long-time sell-side analyst, I know earnings analysis is more complex that that watered-down version.  However, I also KNEW – instinctively, and immediately – this was a BAD report; which is why I wrote the following in Tuesday night’s commentary:

As for tomorrow, the PPT will have to fight the stiff headwinds of a weak opening to earnings season; via one of the world’s largest materials companies, whose plunging revenues serve an ominous reminder of America’s direction…

Despite having not an iota of experience in the aluminum industry, my “back of the envelope” calculations were DEAD ON; as opposed to the supposed “experts” at the Wall Street Journal

Alcoa Earnings: Hey, That Wasn’t So Bad – Wall Street Journal

…and Seeking Alpha; actually issuing a BUY recommendation…

Market’s Missed Reaction To Alcoa’s Earnings Beat Provides Buying Opportunity – Seeking Alpha

…which hopefully was IGNORED; given AA is down 4.5% before midday, despite blatantly obvious PPT support of the “DOW JONES PROPAGANDA AVERAGE”…

It’s not like I should be surprised, as I’ve lived on an “island” for the past decade.  No matter how RIGHT I am proven to be; about the economy, the dollar, U.S. real estate, the Iraq war, or Precious Metals – to name a few – I am surrounded by dissenters.

The most vocal emanate from “Planet Wall Street” – as Bill Murphy calls it – including politicians, “analysts,” and the MSM.  However, friends, relatives, and colleagues have not been much different; albeit, less confrontational in recent years.

Sadly, some of the most vicious barbs come from our “own team”; which is why I come down so hard on those who should know better  (like Jim Sinclair and Richard Russell) , those seeking to exploit us by “pretending” to be allies (like Larry Edelson and Martin Armstrong), and those aiming to deceive us with “authoritarian commentary” (like “Trader X”).

Thus, it didn’t surprise me one bit when CNBC’s “straw man” – Rick Santelli – was attacked by a hoard of barbarians on the below roundtable; including a young punk of an “ETF trader” from a mainstream, financial-stock focused Wall Street firm…

Santelli Slams ‘Surprise’ Unemployment Data In Epic Screamfest

…and the same with Peter Schiff; like myself, known for having called EVERYTHING correct, but MOCKED by a group of nobodies…

Peter Schiff – CNBC 09 Oct 2012

Santelli and Schiff are experiencing EXACTLY what not only I, but thousands of my readers have dealt with for a decade.  That is, to eternally live as “Cassandras”; doomed to know the future, but never be believed.

In the two cases above, much of the dissenters’ views result from brainwashing; in most cases, subliminally.  To admit Santelli and Schiff are right would be catastrophic to their employment prospects; not to mention, flying in the face of humans’ generally optimistic nature.

Thus, I advise you to FEAR NOT.  Continue to follow the TRUTH, and ‘ye shall be SAVED.’  Conversely, if you succumb to the “dark side” – your near-term CONVERSATIONS may be more pleasant, but your long-term LIFE will not.

PROTECT YOURSELF, and do it NOW!

Call Miles Franklin at 800-822-8080, and talk to one of our brokers.  Through industry-leading customer service and competitive pricing, we aim to EARN your business.