TIE rumor mill
Someone recently asked about a report that Boeing would be using LESS titanium. I replied that this was unbelievable and a rumor.
First of all, I was correct. The truth is that Boeing is planning on using MORE titanium.
"Titanium stocks were making substantial gains with Titanium Metals Corp. (TIE) up 10.7% to $36.04; Allegheny Technologies Inc. (ATI) up 8.1% to $65.22; and Carpenter Technology Corp. (CRS) up 4.4% to $113.88. Allegheny and Carpenter were in part recovering after selling off on comments that Boeing's (BA) 787 has been designed with a 90% reduction in titanium fuselage fasteners.
KeyBanc said Friday that the assertion was wrong and that Boeing had not made any sudden re-design to the 787. Instead, KeyBanc said, the usage of titanium fasteners for the 787 will actually increase as much as six-fold over previous Boeing designs. -By Cynthia Koons; Dow Jones Newswires; 201-938-2007"
Secondly, the market does pay attention to rumors and stocks will fluctuate. It can only help to know the company and industry. That way, rumors that don't matter create buy opportunities.
First of all, I was correct. The truth is that Boeing is planning on using MORE titanium.
"Titanium stocks were making substantial gains with Titanium Metals Corp. (TIE) up 10.7% to $36.04; Allegheny Technologies Inc. (ATI) up 8.1% to $65.22; and Carpenter Technology Corp. (CRS) up 4.4% to $113.88. Allegheny and Carpenter were in part recovering after selling off on comments that Boeing's (BA) 787 has been designed with a 90% reduction in titanium fuselage fasteners.
KeyBanc said Friday that the assertion was wrong and that Boeing had not made any sudden re-design to the 787. Instead, KeyBanc said, the usage of titanium fasteners for the 787 will actually increase as much as six-fold over previous Boeing designs. -By Cynthia Koons; Dow Jones Newswires; 201-938-2007"
Secondly, the market does pay attention to rumors and stocks will fluctuate. It can only help to know the company and industry. That way, rumors that don't matter create buy opportunities.
posted by Andrew at
10:14 AM
2 Comments:
Looks like CNBC anchors/guests are spreading rumours without verifying the facts.I was scared to look @TIE :) after that rumour.
Andrew,
A question about TIE that I was hoping you can answer... One of the things I have seen recently in the Boeing analyst statements was that they were starting to use more foreign sources of titanium such as from Russia because they are much cheaper than domestic sources. Do you know how much this could impact TIE? Is the titanium market similar to the oil market where TIE may be also getting their titanium overseas if its cheaper or are they solely dependent on domestic titanium mines?
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