Part of what makes commodity-driven stock investments so frustrating is that they so often rise much further than common sense says they should in the good times and likewise fall so far in the tougher times. Right now, OM Group (NYSE:OMG) is seeing tougher conditions in Europe, lingering impacts from the Thai flooding and a market that has soured on commodities in general, due to fears of shrinking growth in Chinese imports. While this stock looks cheap, investors cannot afford to ignore the risks that things will get worse before they get better.
A Disappointing Fourth Quarter
OM Group didn't help their case with the fourth quarter results. Revenue was up 50%, but that was a byproduct of the VAC acquisition. Organic revenue seems to have dropped about 8%, with advanced materials down 7%, specialty chemicals revenue was down 9%, while battery revenue fell 13%.
Read more here:
http://stocks.investopedia.
No comments:
Post a Comment