Titanium has to explode.
Alright, listen up buckaroos.
We all know that this shit in Russia has sent commodity prices into the atmosphere. Want to get in on oil? Wheat? Gold? Well, sucks to be you. Sure, they have plenty of room to explode, but they’re old news. Premiums are higher than Wiz Khalifa on an airplane. I wouldn’t mind throwing a few bucks that way, but it ain’t the play that scratches the 10-bagger itch.
Let me introduce you mooncalves to Titanium. I ain’t talking about David Guetta, or the strongest Power Ranger. I’m talking about that sweet white metal. As it turns out, Russia and Ukraine are pretty fucking high on the list of global Titanium producers. As you see here, Russia is the #3 producer of titanium on earth, and Ukraine is #5.
“But Titanium Daddy, production doesn’t mean that much, what about direct exports?,” you might yell, if your unwrinkled brain could form words. And you’d have a point. But let me direct you to some more numbers: You can see here that Russia was the #2 global exporter of Titanium in 2019, and that Ukraine was the #5 global exporter of Titanium Ore the same year. Can you feel your smooth brain starting to get pruney as it soaks in this knowledge?
Let’s go a little further. What, exactly, is Titanium used for? Pigments and medical devices, sure. But guess what else? Airplanes. You know, the things that people mount weapons to, then use to blow up other people during not-so-peaceful times? Guess what else – if it’s good for airplanes, it’s good for drones. Here you can see that total percentage of titanium used in each aircraft has been on a steady uptrend.
TL;DR, Some of the largest producers / exporters of Titanium ain’t gonna be producing / exporting. Commodities have been going crazy, but Titanium doesn’t seem to be one of them.. yet. One of the primary uses of Titanium is tied to the defense industry, which makes it extra special. Kinda like you.
“But Daddy Titanium, please spoon-feed me some yummy tickers ~UwU~,” you say. First off, fuck outta here with that UwU shit, second off, it’s Titanium Daddy. But here you go.
Risk averse? Check out Allegheny Technologies Incorporated ($ATI). Market cap of 3.37 billion, currently within 10% of the 52-wk high, up 12.5% over the last month. A solid company with plenty of gas in the tank.
But you aren’t risk averse. You’re here, leeching knowledge from someone calling himself Titanium Daddy. You want $TROX. Tronox Holdings PLC, market cap of 2.6B. TROX focuses on mining Titanium. They have mines all around the globe– except, of course, in Russia or Ukraine. TROX is the third-largest Titanium feedstock producer on earth. They have an annual production capacity of 753,000 metric tons of Titanium feedstock. (p4) The global production of Titanium feedstock between 2019-2020 was 8.2 million tons. I will do the math for you because I know reading this many words has left you dizzy – TROX produces around 10% of the entire globe’s titanium supply. TROX share price is down 25.4% over the past month. We are about to enter a Titanium shortage. You think that’s sustainable? I don’t.
TL;DR – Titanium scarcity is a thing, Titanium prices are not reflecting it. Long $TROX and $ATI. I’d wait for $TROX to hit some support. NFA.
Submitted March 08, 2022 at 02:05AM by ViperApples
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