OM Group, Inc. (OMG)

A range of interesting sophisticated products. Low price of the stock.

OMG! This stock was stock of the day, and it's such a perfect pun opportunity! A puntunity!

fool pick, low ratios

Good valuation

This is a reminder to myself more than anything, but feel free to take it as a pitch:

I initiated this pick at $15.17. Even at the current price of $26, OMG looks very undervalued.

Based on average free cash flows (FCFs) of $2 per share, I come up with a valuation of $53 for OMG. That might actually be fairly conservative. My downside probable valuation is $39.80. Upside probable is $67.87.

Downside risk is around $15. That's about 60% of net tangible assets. Leverage is fairly low so I'm not too worried about it dropping much further than that (even if anything is possible). Their net assets should be worth at least $20 in all probability, even in a liquidation environment.

Upside potential is $82. Seems high, especially when you consider that the stock wasn't trading quite that high during the boom, but based on historical cash flows, it doesn't seem completely unreasonable.

If this pick hits the $50 - $55 range, I will probably end it. I might even end it sooner given the gaps in my knowledge about all of their operations.

A producer of metals based specialty chemicals for numerous industrial processes and a major producer of Cobalt used in a variety of alternative energy and industrial applications. Below book and with low debt. Should be bought on dips and will do well during the recovery.

time for the next move up, they look poised to break out.

with sales and income growth near 50% and profits over 13% the company can't help but make money. It's a no brainer.

By valuation this stock seems cheap but there are two main grudges for me. Number 1, the performance seems inconsistent no doubt due to the wild gyration of cobalt price and the recent company structuring. Number 2, the misplaced promise of having a piece of the pie which many think is the battery for hybrid cars. According to the optimists OMG should be able to capture a slice of the Li-ion battery that will go into the next generation of hybrid cars. However OMG is in the wrong type of Li-ion battery. OMG is the cobalt Li-ion battery ingredient supplier. BUT, the type of Li-ion going to the next generation of hybrid cars most likely will be the Iron Phosphate type of Li-ion battery such as the type pioneered by A123Systems. Cobalt Li-ion battery will continue to dominate applications such as handphones and notebook computers the outlook of which is not so bright for the next year or so.

A must have SCREAMING bargain.
One of the best balance sheets, company grows extremely fast (ever heard of rechargeable batteries...:)
Tremendously oversold.. Hope to catch the real low and buy this as redemptions continue. $17 is good, but the bottom will be revisited, then - all aboard :)
Still, have no problem rating outperform at $17. silly cheap.

Discount to NWC

Priced below tangible book value, consistent earnings, a strong balance sheet, and it exploits Africa. Of course it will outperform.

I mean talk about a bargain bin price. Granted, it is not quite as low as it was when it dropped to single digits six years ago with news like:
http://news.bbc.co.uk/2/hi/business/2345727.stm:

But that was in 2002, here's some more recent news:
http://www.irinnews.org/Report.aspx?ReportId=80730

Two words my friend: Sure thing.

- NORCEVIF, THE BLOOD COBALT PROFITEER

all stocks have been beaten down lately....I do not own any shares

P/E = 3.84, PEG 0.38 - both among the lowest in class.

EPS = $6.52

OMG's Profitability, Growth & Effectiveness are among the best in their class.

Very low debt.

The price will again hit $60 this year.

OMG has a book value of $38 and forecast earnings of $5 per share, yet it only trades in the upper $20 range. When the economies of the world start to show signs of life this stock should be a big winner, although it may take a couple of years to realize it.

Deep value play, great long term appreciation potential.

trading at a bargain basement price, potential merger candiate, call options at 40 strike for sept. or dec. will make you smile all the way to the bank for little investment and huge return

The need may be slowing but it's not disappearing. Catch it on a dip.

low p/e, these metals are in, and will continue to be in great
demand, as well as, a dip in price, due to the market, and
the company setting itself up for the future.