titan cops a belting but should bounce back

Well, not one of Titan's better days! After soaring to 54 cents just a fortnight ago on the back of CSM's bid, it closed today at .335.

The quarterly released today showed strong cash backing but mentioned the "complexity" of the resource after further drilling. This appears to have spooked the market with a further 12% fall on top of the losses over preceding days.

With Armstrong slated to produce first ore in October and anticipated cashflow (conservatively estimated at around $18m per annum, the stock sure looks cheap on current valuation. Still, the market is never wrong and with chart resistance broken, it may fall further yet before bouncing.

Anyone care to predict the move from here?

IMO, an upward move in the spot nickel price should see this stock recover its losses and resume its long term uptrend. I see TIR as suffering the negative after-effects of an aborted takeover and the temporary downturn in nickel. Both should prove short term malaises.

Global nickel demand is forecast to vastly outstrip supply over the next two years and Titan is sceduled to have 3 mines operating by end of 2005, with earning estimates in excess of $30m per year, according to James Hamilton of "Resource Stocks" magazine.

One to watch if you want to catch the next wave in the nickel boom.

I hold and tend to take long positions in stocks so conduct your own research.

R/Gupper