Investors who want to play commodities from a more strategic, and generally less volatile, angle may want to consider OM Group (NYSE:OMG). While OM Group is not a pure commodity company in the sense that it sells raw metal, the company does offer a way to play the demand for cobalt through its cobalt-based specialty products businesses. Better still, it seems too cheap.
A Great Quarter That Most Won't Notice
OM Group has precious little institutional coverage, so it's not exactly front page news when the company reports earnings. Moreover, 9% revenue growth probably does not seem all that exciting, even if it is well ahead of even the highest published revenue estimate. Top line growth was certainly boosted by the inclusion of a full quarter of the battery business; the pre-existing and fully comparable advanced materials and specialty chemicals businesses posted growth of 6% and 5% respectively on modest volume growth.
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