Argex Titanium Inc. ARGEF

Great news -- titanium oxide going up

[canada7]

Just found this news from Barron


https://blogs.barrons.com/stockstowatchtoday/2010/08/02/kronos-soars-just-a-titanium-squeeze/?mod=yahoobarrons

Titanium Oxide is short supply, the companies involved went up 20% in one day.

Read carefully here. KRO has about 13% market share, and has a market cap of $1.35B.

However, at commercial production (3 years later), Argex will have 30% of the titanium market share, plus IRON and Plus Vanadium (probably the only producing vanadium mine at that time as competitors such as APA will come probably several years later). We can expect the market cap of Argex should be double of KRO if Argex can produce 30% of world production (assuming vanadium is FREE and iron is FREE), or that shold be $2.7B market cap, or several hundred dollars per share assuming a worst case dilution.

Also, note that trailing P/E of KRO is 39, and in my earlier calculation, I used only 5. If I used 39 as the PE, Argex stock may be an astronomical number when it is in commercial production. Even with just pilot production, with PE of 39, Argex should be around $25 assuming a worst case dilution, and this may be achieved about 18 months later

Also, remember that Argex will not be one property company as it recently acquired another property with 30% grade titanium.

Kronos Soars; Just a Titanium Squeeze?

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By Tiernan Ray

The biggest gainer on the New York Stock Exchange today isKronos Worldwide(KRO), producers of titanium dioxide, whose shares are up $4.69, or 20%, at $28, on sixteen times the average daily volume for the stock.

Perhaps that’s because today’sISM “Report on Business”for July found that supplies of titanium are low relative to demand, and that prices have been on the rise.

$1.4 billion (market cap) Kronos, based in Dallas, Texas, last year had about a fifth of the total market for titanium dioxide in Europe and 16% of the U.S. market, the world’s two biggest markets for the stuff,according to its last annual report. The company was the fourth-largest supplier in the world last year, with 13% global market share, it has said.

Titanium dioxide is valued as a pigment that can lend a whiter finish to materials.

I would note thatE.I. DuPont de Nemours(DD), Kronos’s primary competitor in titanum dioxide, is up 84 cents, or 2%, at $41.51.

As my colleagueGreg Bartalospoints out, the stock hit a 52-week high today, which may have attracted some day-traders looking to profit from the surge, even in the absence of hard news.