Thursday, May 13, 2010

Little Mental Battles

The little mental battles that face us each day such as: to chase or not to chase?

Titanium Metals (TIE) is the perfect stock looking to breakout here - excuse the lack of volume, as stocks can now rally 100s of percent without any volume expansion. (so we need to adjust to the new paradigm) The highs it has tested for months in the $17.40s are now being superseded.

Fundamentally, this is the stock you buy each time there is a Boeing (BA) expansion cycle - which we definitely do have. But if analysts are anywhere near correct for 2010 estimates, we are now talking almost 60x forward estimates. Meaning if analysts are wrong by a factor of 100% its still a 30x forward situation.

Apparently no price is too high.

Fundamentals v technicals. Little mental battles.

No position

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