Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of titanium maker RTI International Metals
So what: The company announced today it is buying privately held Remmele Engineering, which makes products for the aerospace and medical device industries, for $164.5 million. The deal is expected to immediately add to earnings, and the company increased fiscal-year 2011 revenue to $520 million-$535 million from a prior outlook of $500 million.
Now what: The company was very upbeat in its outlook for 2012 as well, and it appears its end markets in aerospace and medical devices look strong. RTI still isn't cheap, trading at 29 times forward earning estimates, before the acquisition. I'd like to see some increased profitability before jumping in, but hopefully this deal will put the company well on the way.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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