OM Group, Inc. Common Stock (OMG)
Looks like CEO & CFO started buy shares after their disappointing earnings.
goo.gl
"...Om Group Inc (OMG): Chairman and CEO Joseph Scaminace Bought 15,000 Shares
Chairman and CEO of Om Group Inc (OMG) Joseph Scaminace bought 15,000 shares on 03/05/2012 at an average price of $24.9. OM Group, Inc. is a international producer and marketer ofvalue-added metal-based specialty chemicals and powders. Om Group Inc has a market cap of $819.8 million; its shares were traded at around $24.9 with a P/E ratio of 6.7 and P/S ratio of 0.5. Om Group Inc had an annual average earnings growth of 1% over the past 5 years.
OMG recently reported its fourth quarter and full year 2011 results. The company announced that net income was $37.9 million.
Richard Snow owns 14,541 shares as of 12/31/2011, an increase of 25.83% from the previous quarter. This position accounts for 0.016% of the $2.04 billion portfolio of Snow Capital Management, L.P. Ken Fisher owns 283,050 shares as of 12/31/2011, a decrease of 33.15% of from the previous quarter. This position accounts for 0.019% of the $33.5 billion portfolio of Fisher Asset Management, LLC. Joel Greenblatt sold out his holdings in the quarter that ended on 12/31/2011.
VP and CFO Christopher M Hix bought 5,000 shares of OMG stock on 03/02/2012 at the average price of 25.33. Christopher M Hix owns at least 48,900 shares after this. The price of the stock has decreased by 1.7% since...."
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I have been looking at this one to start a tracking position in. If one feels that management has positioned the company now for no more earnings surprises and EPS are positive going forward, the EK$ value could top $50.00/share. Therefore, if I can start a position at the right price ($24.25/share or lower), the risk/reward opportunity appears good.
From their most current earnings report:
metal-powder.net
Despite a 26.6% rise in net sales to US$1.5 billion, the operating profit took a 70.2% fall to US$36.5m.
From the article:"...Joseph Scaminace, President and CEO, says: “During the fourth quarter we felt the impacts of the slowing European economy and disruptions to the electronics industry from the Thailand floods.”
Their Magnetic Technologies Division took a hit due to the recent Thailand flood. I expect this was a one time event and revenues should catch up over 2012.
Sales by segment
Magnetic Technologies: US$276.1m, –
Advanced Materials: US$640.9m, +3.3%
Specialty Chemicals: US$470.0m, +1.6%
Battery Technologies: US$128.8m, +13.1% ...".
Steady Growth in Book Value
Earnings Per Share -(3 negative years out of the last 10)
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Seems like the company is well positioned to take advantage of any marginal growth in Europe and/or U.S.. I am looking at selling some of my E.I. du Pont de Nemours and Com (DD) to finance the trade. DD may see their growth from Solar Panels slow due to a lot more competitors flooding their markets w/ cheap panels and a slight slow down in China's growth. Stock is near it's 10 year high and selling well above it's EK$ value.
EKS |
