A few years ago, we identified tire shortages as a scourge of the global mining industry. Please forgive me for retreading an old theme.
Fording Canadian Coal
While rubber prices have bounced higher, the real issue is constrained capacity to fabricate the giant "off the road" (OTR) radial tires needed to trick out these firms' humongous haulers and loaders. Gold giants Newmont Mining
Industry leaders like Michelin and Goodyear Tire & Rubber
That someone is Titan International
Arguably more important than Titan's forthcoming capacity is the firm's claim to a manufacturing method that not only promises to boost tire life by up to 25%, but also costs less to manufacture. Titan has a patent filed for its process, and expects that large, higher-cost manufacturers will turn their attention elsewhere when the OTR supply gap possibly closes next year. That would leave Titan to bask in the glory of many more years of intense demand for its new wares.
Even though Titan has ridden this wave from a sub-$1 share price in 2003 to a roughly billion-dollar market capitalization today, it's still unknown to most investors. Though the firm appears to be well-known to hedge funds and other institutions, it's only received about 50 ratings in Motley Fool CAPS. I, for one, am giving Titan a green thumb.