Metal Alloy Producers Consolidate and Form Partnerships (CRS, ATI, LQMT)

In the manufacturing process Carpenter Technology Corporation (NYSE:CRS), Allegheny Technologies Incorporated (NYSE:ATI), and Liquidmetal Technologies, Inc. (OTC:LQMT) play a key role in supplying metal alloys before a product reaches its final stage for sales and deployment.

As publicly traded companies in general buy back more shares than they are issuing; so too is there a general acquisition and consolidation atmosphere that has been developing since last summer. Look at Carpenter Technology for example… 

The Company acquired Oilfield Alloys of Singapore which makes drilling equipment in the Asia-Pacific region in June and CRS is now smoothing out its June merger agreement with Latrobe Specialty Metals via amendments to better adjust the books of the deal which takes a little time. CRS is currently trading in the $55.99 range.  

Another big player in the metal alloy field is Allegheny Technologies who had a busy December. ATI declared a quarterly cash dividend of $0.18 and announced a long-term deal with the Goodrich Corporation, for the supply of aerospace forgings used for landing gear components.

Allegheny Technologies is renowned for its forged and cast metal components for various load-bearing and fatigue-resisting applications in the jet engine, aerospace, and industrial markets. ATI is currently trading in the $49.64 range.

A much less expensive “Entry Level” point into the metal alloy industry is Liquidmetal Technologies which is currently trading in the $0.15 range. LQMT alloys' have a unique atomic structure that can make some industrial applications that were not possible before. The Company controls these intellectual property rights with more than 50 U.S. patents. There’s value right there. 

In late Dec an LQMT subsidiary raised $3 million by selling “Membership Interests” and in doing so avoided general share dilution; a smart move I believe. Liquidmetal has 2 to 3 times the strength of titanium and stainless steel and is processed similar to plastic on its proprietary Liquidmetal molding machines. The Company has applications for the medical, military, sports, and industrial sectors.

Could well be worth a look at 15 cents…  

I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.