TIE - trading potential
Before the market breakdown I believed TIE could hit over 39 due to its trading pattern following a strong earnings report. With falling sponge prices and increase production (not at full capacity yet) established in April 2007, and the continued demand for titanium I see TIE beating, and potentially increasing margins.
It has a heavy short interest, with insiders buying fairly consistently for the past few months. With a solid earnings upside, TIE can see a pretty big run upward given the short interest… and unfortunately vice versa.
I am not playing anything on the short-term with TIE so I do not care if they do not beat when they report (although I think they will). They will definately have a better 2nd half due to the increase in production. TIE’s facilities consistently run at 95% capacity, increasing capacity increases earnings. It is a matter of what they were able to squeeze out of their new facilities, as well as costs. So they may not blow away revenue, but earnings should beat.
FYI: now is a good initial entry for TIE.
