OMNOVA Solutions, Inc. (NYSE:OMN)

Good margins and controlled operating costs, decent P/E.

One resistance area into the nines, strong company. Good buy here, I will trade it after it goes up another .75 cents.

Value and growth

The company withstand the crisis better than many others, which resulted in 385% increase in stock price in the last year. As a result now the price for the stock is higher than it was since 2002 except for a short period in 2006 when the price reached $6.65, which is a bit higher than today's $6.55. What is the reason for such an optimism?

From the quarterly report:
***
The Company’s net sales in the third quarter of 2009 were $186.1 million compared to $239.5 million in the third quarter of 2008. The Company’s Performance Chemicals business segment revenue decreased by 28.2%, while the Decorative Products business segment revenue decreased 13.1%... Contributing to the sales decrease in 2009 were net volume declines of $23.3 million as a result of weak market conditions, lower pricing of $34.8 million as a result of lower raw
material costs and unfavorable foreign exchange translation of $3.3 million, partially offset by the Decorative Products Asian sales mentioned above.

The Company’s net sales in the first nine months of 2009 were $507.6 million compared to $649.8 million in the first nine months of 2008. The Company’s Performance Chemicals business segment revenue decreased by 26.6% while the Decorative Products business segment revenue decreased 14.8%. Contributing to the sales decrease in 2009 were volume declines of $109.0 million, lower pricing of $38.6 million and unfavorable foreign exchange translation of $15.0 million, which were partially offset by additional sales of $20.4 million from the Decorative Products Asian operations. The Decorative Products Asian operations were acquired on December 31, 2007. Net sales in the first nine months of 2009 includes ten months from the Decorative Products Asian operations as compared to the first nine months in 2008, which includes seven months. Gross profit in the third quarter of 2009 was $44.0 million with a gross profit margin of 23.6% compared to gross profit of $39.1 million and a gross profit margin of 16.3% in the third quarter of 2008. The improved margin was primarily due to lower costs for raw materials and a reduction in manufacturing costs as a result of cost reduction initiatives and lower volumes. Gross profit in the first nine months of 2009 was $115.7 million with a gross profit margin of 22.8% compared to gross profit of $103.3 million and a gross profit margin of 15.9% in the first nine months of 2008. The improved margin was primarily due to lower costs for raw materials and a reduction in manufacturing and cost variances as a result of cost reduction initiatives and lower volume. The Company expects
volumes to improve gradually over the next four quarters...

Total debt at August 31, 2009 was $144.6 million, down $43.7 million from November 30, 2008. Other expense was $0.1 million in the third quarter of 2009 compared to income of $0.5 million in the third quarter of 2008. Included in 2009 are flood related costs of $0.6 million. Other expense was $0.3 million in the first nine months of 2009 compared to income of $1.7 million in the first nine months of 2008. The change is primarily due to an asset write-off of $0.7 million, flood related costs of $0.6 million and foreign exchange losses of $0.8 million.
***

Not bad, but does it really justify a 385% increase in the price of stock in the period of time when S&P increased only 24%?

Any stock that goes up a dollar in five days is nice to have. $D

Well positioned for economic recovery, paid off debt, access to Asian markets, leader in Green products

Heard they are far ahead in "green" technology and plan on
new products hitting market long before competitors. Paid off a lot of debt and in right place at right time. ...

Great fundamentals in a lousy economy - jumping on the bandwagon a bit late perhaps.

I think this is a good play.

Excellent small cap stock. Specialty chemicals. Showed improvement in latest earnings report. Near bottom.

Great play for a spring rally. Watch housing rally with lower rates and dropping home prices.

News and research

10,000

Watch the market condition for the next 6-12 months

I think it's an interesting company and it just looks like a good one. :) --A Scientist

low price, acceptable risk; good recent financials

jumping on bandwagon

5-star $197 million market cap on 11/18/06
Polymers and chemicals, mostly for construction.
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