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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E.J. Neitz Jr who wrote (15716)	10/31/2002 12:50:07 PM
From: Softechie	Respond to of 78704

I wonder will they run into problems with liquidity and covernants...S&Ps and Moodys will surely downgrade their debts now.

To: E.J. Neitz Jr who wrote (15716)	10/31/2002 1:20:51 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78704

OMG. Book value increasing every year in past 10. Now - well, as of Monday anyway - b.v. at $30 vs. stock price today $6-7. Price/sales under .1 (per Yahoo) whereas in past 10 years it's been mostly over 1. Decent profit margins on those sales. From the company's annual: "OMG is one of the top three producers of specialty chemicals in the U.S. and leads the world in refining and production of cobalt with the world's largest smelter and refinery. The company is also the number one producer of cobalt inorganics, cobalt and nickel inorganics, electroless nickel and cobalt powders." Also, a sentence I like... "Typically, OMG products make up a small part of our customers' total manufacturing or processing costs but are essential components to superior product performance." To me, it looks like OMG could be a viable business. No question the debt issue has come to bite them in this recession. Perhaps management has mucked up the company beyond repair. Taking on too much debt only being one issue. Even if not, management certainly have lost confidence with investors... me for sure. I'm saying for "most" companies, price determines value. Because OMG has a lot of debt may be a reason to avoid buying the company. But the company may be a value play nonetheless. Paul Senior