First off, to even begin to talk Titanium and it’s businesses. One must bow down and pay homage to Harold Simmons. A controversial man over the years in the business and the political affiliations arena of the worlds richest. Him and his family are very generous and philanthropic. But this man did not get to where he is today and not step on some throats (I love it) along the way. His business genius is almost unparalleled in American industry, and American business law. Whose banking expertise helped him develop the acquisition concept known as the “leveraged buyout” (LBO) to acquire various corporations, “all debt and no equity” philosophy of capital management (ironic considering the debt ratios of his holdings now are very low) Also genius with regards to how over the years he structured his empire, via their holdings of each other and the Contran Corporation < (The BIG Dog) of them all BTW. For advantageous tax reasons and to KEEP SOME USA JOBS HERE. Simmons conducted a widely publicized but unsuccessful takeover attempt on the Lockheed Corporation , after having gradually acquired almost 20 per cent of its stock. Some say to bust the unions and liquidate the pension fund (Isnt that what Gordon Gekko / Wall Street tried w/ BluStar Airlines?…lol)
Just check out the last SEC disclosure Exhibit 99 filing of this company.
(note: Poor yourself a drink before doing so…you will need it)
Mr.Simmons is 80 yrs old right now. Contran is operated by Mr. Steven L. Watson, who is 60+yrs old. Glenn Simmons, Harrods brother is also well in years.
What Contran Corp owns:
Titanium Metals Corporation (TIE). $18
Kronos Worldwide Inc. (KRO) $57
Valhi, Inc. (VHI) $29
CompX International Inc. (CIX) $14.75
NL Industries Inc. (NL) $14.66
Keystone Consolidated Industries, Inc. (KYCN.OB) $6.36/(KYCN.PK)$7.50
I think two different listens for Keystone is for bankruptcy proceedings here…an not sure just yet.
He, or Contran I should say, also might be getting ready to consolidate everything under one company now and go public with it. Keystone Consolidated Industries, Inc. (KYCN.OB) might be that. Contran just filed purchase stake on them. It’s a thought. And w/ the actions of the past, anything is plausible here.
Let me tell ya what I THINK he did recently. And this was slick. I am also not sure just yet. But the timeframe seems to be right. I will know when I check these IRS fillings Monday. I say this because a new trust for his grandchildren per some recent SEC fillings have been stoked with stocks of late. Ya see, that’s the edge I look for. It is like being a bookmaker, and know if the quarterback took his girlfriend for an abortion the day before. Or if some point guard owes his cocaine dealer $2500. EVERYTHING is relevant is the gist. And in todays times with the harnessed collective of the web. Some say it causes a very grey area at the least, with regards to what is insider info or not. That is one of the pitfalls before leap upward in the harnesses collective conscience to Internet has brought to our species. The web is a big puzzle of money, ya just have to know where the pieces go and where to look for them pieces.
In this particular case. I wanna know where Mr Simmons thinks his grandchildren best interest and stability lay going forward.
Generation-Skipping Transfer Tax
March 16, 2011
Form 706 Now Available on IRS Website
As of yesterday 3-15-2011, Form 706 is now available on the IRS website.
•Form 706-GS(D): Generation-Skipping Transfer Tax Return for 2010 Distributions
•Form 706-GS(T): Generation-Skipping Transfer Tax Return for 2010 Terminations
In 1986, Congress enacted the federal Generation-Skipping Transfer Tax (GST Tax)
Generation-Skipping Transfer Tax Opportunity Expiring on Dec. 31, 2010
The recently enacted Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Tax Relief Act of 2010) made several changes to the estate, gift, and generation-skipping transfer (GST) tax laws. The primary modifications were a retroactive increase in the lifetime exclusion of $5 million for estate and gift tax purposes and a reduction of the tax rate on the excess to 35 percent.
Less publicized were changes to the GST tax, which was also reinstated retroactively to Jan. 1, 2010, with a $5 million exemption. However, transfers made during 2010 aren’t subject to tax. The GST tax is a separate tax assessed on estate or gift transfers to grandchildren (or other “skip persons” – unrelated individuals who are at least two generations younger than the grantor) where the property is not subject to either estate or gift tax for the donor’s child.
Therefore, individuals who want to transfer assets to grandchildren or to other skip people may do so without incurring GST tax and also without using any of the grantor’s otherwise-available GST exemption, but only if the transfer is completed during 2010.
There are two primary ways to utilize this 2010 benefit and avoid any GST tax: first, outright gifts either directly to grandchildren or trusts exclusively for them, although the gift would be subject to the regular 35 percent gift tax (for example, if cumulative lifetime gifts exceed $1 million in 2010); second, transfers to grandchildren from previously existing trusts prior to Dec. 31, 2010
Industrial and emerging markets sectors – With its unique and desirable physical properties, titanium can be used in a number of other end-use markets. Established industrial uses for titanium include chemical plants, power plants, desalination plants and pollution control equipment. Rapid growth of the Chinese and other Southeast Asian economies has brought unprecedented demand for titanium-intensive industrial equipment.
*TIMET (TIE) has an ownership interest in a joint venture, XI’AN BAOTIMET VALINOX TUBES CO. LTD. (BAOTIMET), which produces welded titanium tubing in Xi’an, China.
Titanium is accepted for many emerging market applications, including transportation, energy (including oil and gas) and architecture. Although titanium is often more expensive than other competing metals, over the entire life cycle of the application, we believe titanium is a better value alternative due to its durability, longevity and overall environmental impact. In many cases customers also find the physical properties of titanium to be attractive from the standpoint of weight, performance, design alternatives and other factors. The oil and gas market, a relatively new, potentially large growth area, utilizes titanium in certain down-hole casing, critical riser components, tapered stress joints, fire suppression water pump systems and saltwater-cooling systems. Additionally, as offshore development of new oil and gas fields moves into the ultra deep-water depths and as geothermal energy production expands, market demand for titanium’s light-weight, high-strength and corrosion-resistance properties is creating potential new growth opportunities. We have resources dedicated to the research and development of alloys and production processes to promote the expansion of titanium use in this market and in other non-aerospace applications.
Although we estimate emerging market demand presently represents less than 5% of the total industry demand for titanium mill products, we believe the emerging market sector offers many opportunities, and we have ongoing initiatives to actively pursue and expand our presence in these markets
Distribution. We sell our products through our own sales force based in the U.S. and Europe and through independent agents and distributors worldwide. We also operate eight service centers (five in the U.S. and three in Europe), which we use to sell our products on a just-in-time basis.
I am going to pitch Metals USA Holdings (MUSA)
And US Ecology (ECOL) to clean up all their mess…….to Contaran