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December 26, 2009 Dear Friend,
We raised our ATI price
target to $65 from $50 based on a 12 up from 10x P/E applied to
average 2012-15 estimated EPS. Loss avoidance, the 787 first
flight and the planned rampups of the 787, A380 and Joint Strike
Fighter combine to "de-risk" the near-term. Incoming calls
from aerospace investors to us about ATI have increased.
The dollar fell this week,
crude oil rose to $77.10, bond yields rose sharply, metals
prices (except gold) rose with nickel up 10% and copper up 4.8%
and aluminum and copper exchange inventories fell. It was a
good week.
We do not expect to publish a
"spot markets" next weekend as certain data services will not
publish and we will attend Steeler games in Pgh adn Miami. Our
offices will be open throughout the Holiday with Joe Reagor on
Monday, Mickey Foley on Tuesday and yours truly on Wednesday and
Thursday.
Happy New Year.
Faithfully,
John C. Tumazos
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Copyright © 2008 John Tumazos Very Independent Research,
LLC
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