Dykstra: Titanium-Strength Calls

Titanium Metals(TIE Quote), which opened up shop in 1950, specializes in manufacturing titanium products for aerospace, industrial and other applications in both the U.S. and Europe. The company sells its products through its own sales force in the U.S. and Europe and employs independent agents and distributors elsewhere.

The company's customer list is quite impressive, featuring Boeing, Rolls-Royce and its German and U.S. affiliates, and United Technologies, among others.

The company's principal competitors in the aerospace market are Allegheny Technologies(ATI Quote), RTI International Metals(RTI Quote) and VSMPO.

Just check out these numbers: It has a forward P/E of 15.25, a return on equity of 37.70%, no debt, and $75.10 million in free cash flow. This is definitely a company to own. I will place an order to buy 10 December 22.50 calls (TIELX) for $10.60 or better.

The Game of Life

The Mets and Yankees are headed in opposite directions. While the Mets still lead the NL East by a small margin over the Braves and Phillies, they have lost 10 of their last 13 games. Meanwhile, the Yankees are red-hot, having won eight straight games to claim second place in the AL East, 8 ½ games behind the Red Sox, who still own the best record in baseball.

The Yankees have had good starting pitching and stellar relief pitching, A-Rod leads the majors with 25 home runs, and Bobby Abreu has awakened from his slumber to become the hottest hitter in baseball.

In the NL Central, the Brewers, despite a recent tailspin, continue to enjoy a comfortable lead as the rest of the division struggles to get within hailing distance of .500. In the AL Central, the Indians have a one-game lead over the Tigers, who had Justin Verlander pitch the first no-hitter in Comerica Park history on Tuesday against the Brewers. The NL West continues to be a three-team battle between the Padres, Diamondbacks and Dodgers. The Angels enjoy a modest lead in the AL West, and their John Lackey became the first 10-game winner in the majors.