The Most Prescient Insider I've Ever Seen

Harold Simmons is a self-made billionaire.

He went from bank trainee to controlling six NYSE-traded companies engaged in sugar, chemicals, oil, aerospace metals, and nuclear waste.

And as a corporate insider, Simmons' prescience is downright staggering. He knows when to buy stock of the companies he’s involved in better than anyone I’ve seen.

Guys this good are usually investing legends that don't actually work for any of the companies they buy. But sometimes, very rarely, you'll find a CEO or founder who bets big, and wins even bigger with his company's stock, over and over again.

Harold Simmons is that man. And he’s at it again...

Harold Simmons has recently loaded up on another $9 million worth of Titanium Metals – also called Timet (NYSE: TIE). Simmons controls roughly 60% of the company. When you invest in this company, you're basically investing in Simmons himself. And to understand why Simmons is buying, you first need to understand a bit about the titanium industry...

Titanium is a light, extremely durable metal capable of withstanding extreme temperatures. The company makes 18% of the titanium mill products used worldwide. And more than two-thirds of these go to the aerospace industry.

Already in a long-term agreement to supply Boeing with titanium mill products, Timet is going to be getting a lot more business from the commercial airline industry.

Approximately 58 tons of titanium are currently used in each Boeing 777. Just recently, this plane set a world record, traveling 13,422 miles from Hong Kong to London, non-stop. This is the wave of the future: lighter aircraft that use less fuel to fly to any city on earth non-stop.

The Airbus A380 (the Boeing 777's primary competitor) already uses 77 tons of titanium. However, the real jackpot is going to be the new Boeing 787 Dreamliner slated for commercial launch in 2008. The Dreamliner is expected to use an estimated 91 tons of titanium per plane. Boeing expects to sell 3,500 of these over the next 15 years, for an estimated $400 billion. It has already placed orders with Timet for parts for 56 of them.

You get the idea... a lot of titanium will be going into planes in the coming years. But that’s not enough for Simmons...

Harold Simmons doesn't buy stock in his companies just because they're going to make some more money; he buys because they're going to make a LOT more money. Two of his three most recent insider buys occurred just days before Timet announced strong earnings.

So what's causing the big share price jump this time? Titanium prices.

Titanium, like most commodities, is soaring. And it's only going higher...

Demand is increasing as more and more industries begin using titanium. Timet estimates that emerging market demand for titanium will grow at double-digit rates for the next couple of years. It's already making inroads to military combat vehicles, high-end automotive parts, sporting goods (softball bats and golf clubs), and the oil industry.

Harold Simmons bought his shares up to $37.00. Two months ago, when I recommended this stock to readers of my newsletter, the share price was $51. Timet is now trading at over $60.

I told my readers to buy Titanium Metals (TIE) up to $56 a share, and use a 25% trailing stop. Although it’s above my buy price right now... keep an eye on this one. Should this stock temporarily trade under my buy price of $56, it’s an outstanding buy.

When you see Harold Simmons backing up the truck to buy, consider doing the same. Based on his track record, you’ll be very glad you did.

Good investing,

Graham Summers