OM Group, Inc. (NYSE:OMG)

CAPS Rating: 4 out of 5

The Company is a vertically integrated international producer and marketer of value-added, metal-based specialty chemicals and related materials.

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Member Avatar JimAnt (32.96) Submitted: 4/24/2007 1:51:30 PM : Underperform Start Price: $53.24 OMG Score: +60.36

Long-term underperform. Lackluster management. Stock price at the high end.

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Member Avatar 3KittyinOR (73.86) Submitted: 4/11/2007 9:13:30 PM : Outperform Start Price: $43.56 OMG Score: -55.61

It's plainly undervalued and serves such a wide variety of industries that its business is attractively diversified.

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Member Avatar ViciousChicken (80.60) Submitted: 3/15/2007 10:45:31 AM : Outperform Start Price: $50.90 OMG Score: -63.56

I like their position in the market, and I like the market they're in. I see them as a solid company, which is why I'm bullish on them, but I'd be lying if I didn't say their P/E and market cap doesn't make me nervous.

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Member Avatar MCKInate (97.36) Submitted: 1/23/2007 6:00:32 PM : Outperform Start Price: $46.39 OMG Score: -59.06

VL

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Member Avatar NetscribeBasMtrl (31.14) Submitted: 12/28/2006 6:25:21 AM : Underperform Start Price: $46.39 OMG Score: +59.44

OM Group is a leading, vertically integrated international producer and marketer of value-added, metal-based specialty chemicals and related materials, primarily from cobalt and nickel. With the product offering to over 30 industries, it markets more than 825 different supplies to approximately 2,100 customers all over world. Going ahead, OMG’s sale of nickel assets and its plans to acquire specialty materials businesses, envisages a critical step towards its transformation into a pure specialty products company.

The company is attempting to go through a transformation that could reduce earnings substantially, at least in the short term. There is also uncertainty as to the timing and potential impact of specialty materials acquisitions that are being sought. Looking past 2007, there have been several announced expansions that would eventually lead to a growing supply of cobalt, but for next year there are no meaningful new sources coming on stream. That could lead to a very tight cobalt market, leading to high prices, thereby limiting the operating margins of the company.

The market in which it participates has historically been competitive and this environment is expected to continue in future also. Though, in the long run, the company is well positioned to garner opportunities, but presently, with a great deal of uncertainty post the sale of its nickel business, wait and watch should be the call for an investor.

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Member Avatar fibreoptik (89.06) Submitted: 12/15/2006 12:50:38 PM : Outperform Start Price: $48.04 OMG Score: -60.43

OMG!!!!!

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Member Avatar tony7follower (94.26) Submitted: 12/4/2006 8:47:05 PM : Outperform Start Price: $47.75 OMG Score: -62.02

following DatabaseBob

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Member Avatar timeway (22.88) Submitted: 11/11/2006 9:57:07 AM : Outperform Start Price: $49.03 OMG Score: -64.55

Check out that PEG.

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Member Avatar avonman100 (< 20) Submitted: 8/23/2006 7:37:10 PM : Outperform Start Price: $39.73 OMG Score: -63.32

Key is price of metals, especially nickle

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