Titanium Metals (TIE)

Overlooked beneficiary of the global aerospace boom. Over half of TIE's revenues come from aerospace endmarkets.

Titanium will account for about 22% of the total weight of the Boeing 787. To produce a single A380, Airbus requires about 77 tons of titanium. Chen estimates that aerospace manufacturers have a backlog of more than 5,000 aircraft and will require more titanium production to fulfill those orders.

Source: http://www.kiplinger.com/columns/picks/archive/2007/pick0320.htm

Source: http://www.secform4.com/insider-trading/1011657.htm

Only 39% of Titanium Metals sales are under long-term price contracts while more than half of RTI's sales and about 70% of Allegheny's sales are under contact.

Source: http://www.kiplinger.com/columns/picks/archive/2007/pick0320.htm

HP is quickly bringing to market high-density solid state disk drives based upon a breakthrough technology: the memristor. Titanium dioxide is the key material used. Even if this is slow to increase titanium sales, it is bound to raise the buzz level of the metal once it comes to market this year.

http://www.iht.com/articles/2008/04/30/technology/01hpweb.php

TIE is a possible takeover candidate, as evidenced by the flurry of insider buying and the merger activity within the sector.

Capacity utilization rates are very high, and management continues to look for new avenues for expansion.