OM Group (OMG)
is another one of those "blast from the past" stocks for me. I have
owned this own profitably more than once, with multiple opportunities to
buy and sell provided largely by the historical volatility in the
company's cobalt operations.
Today OM Group is a very different
company. The volatile cobalt operations are gone, and the company is
focused specialty chemicals and materials company with good global share
in specialty batteries and magnets. Better still, OM Group has a clean
balance sheet and is still of a size where small strategic acquisitions
can make a real difference.
OM Group is not the cheapest stock out
there, having risen almost 80% over the past year on Wall Street's
enthusiasm for the evolution towards a cobalt-free specialty
chemicals/materials company. Although I do believe weakness in Europe (a
major market for the magnetic technologies business), electronics, and
defense could be challenges for a couple of quarters, and the shares are
not cheap enough to be an enthusiastic buy, this is a stock worth some
due diligence today and a spot on watch lists.
Please continue here:
OM Group An Interesting, Still-Evolving Story
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