TIE Blastoff

Add TIE Calls on Takeover Rumor

By Bryan Bottarelli
Wednesday, November 29, 2006 2:45 PM EST
Wed, 29 Nov 2006 19:45:00 GMT

Dear Bottarelli Research Member,

As you know, one of my favorite metals play is Titanium Metals (TIE – NYSE). I’ve mentioned in past alerts to keep a close eye TIE as the stock tends to make very big upside jumps. And this afternoon, that thesis is coming into play….big time.

As I write, shares of TIE are blasting higher on speculation that they could be the next major take-over target in the titanium sector. This news-driven rally was fueled by Canadian aluminum-maker Alcan which just said that they would be interested in buying a titanium firm at some point to expand its sales to the aerospace market.

TIE

This is pushing all the titanium stocks higher, including Allegheny Technologies (ATI – NYSE), Titanium Metals (TIE – NYSE) and RTI International Metals (RTI – NYSE). Given the fact that this takeover speculation could last a few days, there could be even more upside buying interest in TIE, so let’s get positioned in January upside calls. Here’s the play:

PLAY: Buy the TIE January 30 Calls (TIE AF) at or under $3.00, good for the day. Current bid/ask spread is $2.70 to $2.80. Place a protective stop loss at $1.60.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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