I second the question about also owning RIO.  If I own both ATI and
RIO, should I sell one or the other or just double-down on ATI?

relative to sales (indicating shrinking market demand);

Check the transcript. They were increasing inventories because they
are taking some manufacturing capacity offline in 08H2 for upgrades/
refurbishment. I'm not saying that demand might not be down, just that
it is more nuanced than a simple 2 variable equation.

this could be one of those opps that you watch and watch and then one
day you wake up and look at the price and it's gone. be careful but it
is a definite possibility for aero to make a bid. think Afghanistan
and Georgia and voila this is better than X.

Dave... Very detailed. Thx for that, I am watching this stock and
already have RIO. Should I add ATI at these prices?

Betting on increased aerospace orders.

There are lots of reasons to like Allegheny Technologies, Inc. (ATI).
Here are some:
·      Trading at its lowest LOW since Feb. ’06;
·      Volume suggests an increase in buyers at this price;
·      Steadily improving dividend (yield at $46/sh = 1.57%);
·      P/E = 6.85;
·      LT Debt / Equity = 0.22;
·      PEG = 0.40 vs Industry = 0.84 and S&P 500 = 1.34;
·      Of 11 analysts, only 3 rate it a “Strong Buy”, leaving lots of
opportunities for upgrades;
·      S&P rates it 5 stars (Strong Buy) with a 08/09 target of $80, below
the 5/16/08 close, but 74% above current price ($46.00) based on an
historic low P/E and a discount to peers;
·      Consolidation in stainless steel has ATI rumored as an acquisition
target or better pricing discipline;
·      ATI participates in a Chinese joint venture, Shanghai STAL Precision
Stainless Steel Ltd.
·      PoweRatings Stock Charts indicates “6”, 65% below the 200 MA, below
2 “8” signals (=”Buy”) earlier this year;
·      Shareholder Equity up 542% since 12/04; and
·      Cash Flow positive for the last 3½ years.

Here are some of the negatives:
·      Cash this year is down 50%;
·      Receivables as % of sales are steady, but inventories are up 24%
relative to sales (indicating shrinking market demand);
·      There has been margin deterioration in ATI’s largest segment (flat
rolled products).

Watch Boeing’s order book and buy under $50 if the economy signals a
bottom.