To bring everyone up to speed, just Friday the 19th or March, Boeing Co. announced it will be boosting production of its two most popular commercial jets to meet rising demand for new aircrafts as a turnaround in the beaten-down airline sector makes steady gains"
"Boeing has delayed this cycle for many years, but the ramp in production along with the hot demand for materials in general is driving increased money flow for Titanium," stated Bob Fitzwilson, chief investment officer for the Portola Group hedge fund.
The Portola Group holds nearly 800K shares of Titanium, making it the third largest holding company in its portfolio.
D.A. Davidson & Co. analyst Avinash Kant highlighted RTI and Titanium Metals Corp. as two set to cash out in what he's calling an "avionic revolution" led by Boeing. "We believe the successful adoption of composites and titanium in the Boeing 787 Dreamliner is a game changer, as it will set the stage for significant future adoption and lead to significantly higher demand," stated Kant.
Another company Kant is keeping an eye on is Hexcel Corp which develops high-performance composites like carbon fiber. Kant is watching this group as the "avionic revolution" theme unfolds.
Titanium Metal Supply, another major titanium supplier will soon get benefits from the aerospace boom as well. The company has been a valuable supplier to the aerospace industry for years and is deeply respected among industries heavily reliant on the titanium industry.