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Re: Watts Watt post# 85105

Monday, 03/21/2016 9:31:47 AM

Monday, March 21, 2016 9:31:47 AM

Post# of 232839
"Why has Materion pushed back their estimated time to make big bucks out to 2019?"

Simple. Materion's annual revenues from sales exceeded one Billion dollars last year. If LMT has sales of only $10 million, that would be HUGE for LMT. However, the amount of of money going to Materion from LMT's use of the alloys would amount to just a few million dollars — which is only a tiny percent of Materion's overall sales. LMT would have to have sales exceeding $100 million before Materion's sales would increase by a significant amount. And that is not going to happen until 2019, or there about.

In other words, the stock price of LMT will exceed $10 a share before Materion starts to make a lot of money off of the alloys supplied to LMT's customers.
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