Titanium Metals(NYSE:TIE), reported disappointing earnings last week and as a result, the stock got slammed. The miss was largely attributed to inventory issues in the aerospace supply chain. For those not familiar, the company produces titanium melted and mill products for commercial aerospace, military, industrial, and other applications worldwide.

Many will say that this stock is priced for perfection and it's had such a monstrous run, that it will be impossible to push higher. There is no question that early investors made a mint. Since August '04 the stock has returned over 1,100%. That being said, the stock is off 25% over the last 6 months. Fundamentals in the aerospace industry look good. The company said that the delay of the initial deliveries of the Boeing (NYSE:BA)787 commercial aircraft shouldn't effect their outlook. Led by continuous demand from emerging markets, the company should be set for continued strong growth, and I expect a pick-up by the US carriers sometime in late '08. This should be more than enough to keep their stock price flying high.

With the large diversified metals companies looking at acquisitions, it wouldn't be a surprise if Titanium's name came into play.

With the recent weakness, a strong metal like Titanium is what's needed to strengthen your portfolio.

Disclosure: Author holds no position in any stock mentioned as of 11/6/07.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com.

Titanium Metals: Look past last quarter and focus on the future originally appeared on BloggingStocks on Tue, 06 Nov 2007 12:45:00 EST. Please see our terms for use of feeds.