Dykstra: Titanium-Strength Calls

Titanium Metals offers a durable deep-in-the-money play.
Publish date:

Titanium Metals (TIE) , 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




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) - Get Report


RTI International Metals


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.

The San Antonio Spurs prevailed in a defensive struggle over the Cleveland Cavaliers in game three to take a 3-0 lead in the NBA Finals. Game four is tonight in Cleveland, as the Cavaliers attempt to avoid being swept.

The greatest free agent in the history of Nascar announced his plans yesterday. Dale Earnhardt Jr., who earlier this year parted ways with the company founded by his father, signed with Hendrick Motorsports, a group that has won six Nascar championships since 1995. Adding Earnhardt Jr. to a team that already includes Jeff Gordon, Jimmie Johnson, Casey Mears and Kyle Busch is almost unfair.

Today marks the start of the U.S. Open, which concludes on Father's Day. Characteristically, the Open is designed to be incredibly difficult, with rough that punishes you for errant tee shots. Given his driving troubles thus far this year, Tiger Woods is not the overwhelming favorite this week. On the other hand, if he is able to keep it in the fairway, he will be extremely difficult to beat, given Oakmont's tremendous length.

Phil Mickelson's chances may be directly linked to the status of his left wrist. Regardless of what happens on Sunday, it is unlikely that anyone will even approach the miraculous final-round 63 recorded by Johnny Miller when he won the 1973 Open at Oakmont.

The Players Club appreciates the difficulty of competing on a course such as Oakmont. Moreover, we appreciate the added pressure of a major, and the unbridled satisfaction of winning a U.S. Open. By guaranteeing recurring cash flow through our strategic partner, the Players Club endeavors to remove the pressure associated with the athlete's financial future, thereby allowing him or her to bang home the putts that win championships.

Always remember: Life is a journey; enjoy the ride!

At the time of publication, Dykstra had no positions in stocks mentioned.

Nicknamed "Nails" for his tough style of play during his Major League Baseball career, Lenny Dykstra was an integral member of the powerful Mets of the mid-1980s, including the world champion 1986 squad, and the Phillies in the early 1990s.

Today, Dykstra manages his own stock portfolio and serves as president of several of his privately held companies, including car washes; a partnership with Castrol in "Team Dykstra" Quick Lube Centers; a state-of-the-art ConocoPhillips fueling facility; a real estate development company; and a new venture to develop several "I Sold It on eBay" stores throughout high-demographic areas of Southern California.