OM Group Under The Radar But Worth A Look

Hard as it may be to believe, there actually are other metals in the world beside gold, copper and rare earth elements. Still, with investors' attention elsewhere, relative value hounds may want to do some due diligence on OM Group (NYSE:OMG). OMG is not a miner, nor a major company, but it has an interesting materials business all the same.


OM Group is, to a large extent, in the business of cobalt. More specifically, the company takes raw cobalt (and other metals like copper, nickel, and so on) and turns them into a wide range of powders, coatings, ceramics, additives and other value-added formulations. Like Titanium Metals (NYSE:TIE), and unlike some advanced materials companies like Brush Engineered (NYSE:BW), OM Group does not actually mine or own the mines that produce the cobalt (though OMG does own a smelter). That makes this company a somewhat different type of commodity play - they can benefit with generally higher commodity prices, but only if they succeed in pushing along higher input prices.

Please click the link for the full article:
http://stocks.investopedia.com/stock-analysis/2010/OM-Group-Under-The-Radar-But-Worth-A-Look-OMG-BW-TIE-JCI-AONE1105.aspx