you pick up on small details of my lack of due diligence. yet you both fail to address the cost of titan's latest aquisition and where the damn CASH WILL COME FROM? titan's already carrying a good deal of debt so do you think they will borrow more cash? i think titan will sell more stock. and salt you are sadly undestimating the effect of oil on this market. i will wager that a month from now oil and gas prices will be THE concern for this market. AND HERE IS ONE MORE CONCERN FOR YOU . MONEY WILL START TO ROTATE OUT OF HIGH FLING TECH STOCKS TO FINANCIAL STOCKS. THATS IT NO MORE FROM ME.
Cash is a good example. You say TTN already carries a good deal of debt. Yet, Eric specificaly pointed out in the CC last Q. that TTN's net debt was a mere 100M. For a company the size of TTN and with its growth opportunities and it's cash flow, do you really think 100M is a "good deal of debt"?
flyer. This is a well rounded company. True, beware of fast growth or you will flame out on a rapid cash burn. But they have a huge back log. They can raise cash if they need it.
Money should rotate into financials, just not all of it. The money that was temped out of banks into the silly.com ventures is in money heaven. It will not come back. The people who lost that on their own learned a lesson. The people who did that for a living will soon be working at the video store.
Cull the herd, now it is time to run. TTN was one of my most assuring holdings through the post-March madness along with my banks FBF.
If you'd been paying attention, you would have remembered that Titan already had the cash/ line of credit. This deal is probably what they were working on when they refinanced and obtained additional funds several weeks ago. Surely you don't think that this transaction happened overnight, like you and the missus looking at a new house and then making an offer before considering where the money woouold come from to pay for it. Do you? If you like financials, try ONE. Lots of problems, but a big dividend, and possibly a takeover candidate, as it is about the last regional bank. Also has a message board to worry on.
You mentioned ONE as a promising financial stock. I happen to be under water (sigh!) on one I think is considerably better -- UPC. The yield (at 6%) is higher than ONE's, the PE (10) is lower, the price to book is lower, and since earnings continue to rise steadily (as opposed to ONE's reductions), the yield is safer and the company overall less risky. ONE is big in credit cards, which I see as a hyper-competitive area, while UPC is not. Moreover, the growth in UPC's 12-state region is higher than for ONE, and I think UPC is a better (cheaper) take-over target. Again, I freely admit I'm under water on this one (bought in the high 40s), but I really see it as a better bet than ONE.
Why don't you contact Titan Investor Relations and ask Rochelle where the money is coming from? I did. Why don't you just sell your Titan and buy some financial stocks? YOU don't get it-our place on this board is not to answeryour silly questions-find the answers yourself