Oliver's avatar
@odysseusOctober 21

I am thinking of opening a position in $ATI

It’s a small cap ($2billion) company that manufactures specialty materials and components.

Current share price is $16.32, down 10% past 5 days, -0.55% 30 days, -27% 6 months but +72% 1 year.

It primary consumers are in the aerospace industry which is currently in Covid recovery mode and the company is due to report next week. From what I’ve read it looks like a 50/50 on whether or not it’ll be earnings beat or loss.

Should I wait or jump in?
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Conor Mac's avatar
Whats the bull thesis, is that a LT position or a trade?
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Oliver's avatar
@odysseusOctober 22
Author
@investmenttalk my reckoning is that as more aerospace companies begin to re-open operations those good news stories could have a flow on effect for ATI.

There is also a lot of cheap money floating about that they could attract for niche projects like components for deep ocean submersibles.

It also provides components for energy generation which is set for expansion. That combined with medical products could help the company if we have a period of stagflation

On the flip side raw material costs are generally higher so could reduce profits. Employees went on a 4 month strike and with the labour market tight could struggle to attract / retain skilled workers.

Would be a medium term hold, not looking to flip quickly but not necessarily looking at a long term hold.
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Conor Mac's avatar
@odysseus thanks Oliver :)
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Nathan Worden's avatar
Attracting talent is such a big hurdle right now.
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Oliver's avatar
@odysseusOctober 28
Author
@investmenttalk I didn’t quite catch the dip right as I opened my position at $16.10 but they beat their earnings forecast and went up 12% today, hopefully they can kick on from here in to the low 20’s
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