Only Titanium Minerals has been a losing recent investment for him. He started buying in late 2010 when shares were trading above $17. He bought hundreds of thousands more shares at that price last spring, when shares were stuck in the $17 range. By the time shares fell below $17 last June, he was still buying. And he's been buying ever since, even though shares are now around $14.50.
Why is Simmons so keen to own millions of shares of Titanium Metals? Because he knows the commodity plays a key role in the generation of fuel-efficient airplanes. And though global titanium production is fairly constant, demand is set to rise. "Aircraft build rates provide visibility on a likely titanium market tightening in . Investors may be wary of titanium stocks following multi-year 787 and A380 delays, but accelerating deliveries of these planes should be a catalyst for specialty metals stocks," note analysts at Citigroup.
They add that because the company mills raw titanium and then modifies it into key shapes for customers, it can maintain low costs and high profit spreads. That's why "TIE has significant leverage to anticipated demand growth and the highest projected EBITDA margins of the group," (that also includes RTI International Metals (RTI), Carpenter Technology (CRS) and Allegheny Technologies (ATI).
Citigroup's analysts have a current $17 price target but note further upside if the global economy and titanium demand get stronger. This stock, currently trading around $14.50, hit $35 back in 2007 when industry conditions were aligned. Harold Simmons is well aware of that as he continues to but this stock at ever-lower levels.
3. Pizza Inn Holdings (PZZI)This Texas-based restaurant chain has been a sleepy operator of eponymously-named pizzerias. During the past year, management has been seeking to boost results by trying out a new style of eatery called Pie Five Pizza. The twist: this chain offers a range of toppings and crusts and will have your food in front of you in five minutes. The half-dozen Pie Five stores have delivered fairly solid early returns in terms of sales and profits, though they still constitute just a fraction of the total store base. More importantly, insiders jumped the gun. They bought more than $80,000 worth of stock during the winter at an average price of around $5 a share. Shares have dropped 30% since then, pushing the stock even deeper into micro-cap territory. It's unclear if the Pie Five concept will succeed, but at least investors are now paying a lot less to find out.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV