Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Paul Senior who wrote (44232)	3/11/2012 6:42:43 PM
From: E_K_S	Read Replies (3) \| Respond to of 78628

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 $33.5 billion portfolio of Fisher Asset Management, LLC. Joel Greenblatt sold out his holdings in the quarter that ended on 12/31/2011. VP and CFO Christopher M Hix bought 5,000 shares of OMG stock on 03/02/2012 at the average price of 25.33. Christopher M Hix owns at least 48,900 shares after this. The price of the stock has decreased by 1.7% since...." ----------------------------------------------------- I have been looking at this one to start a tracking position in. If one feels that management has positioned the company now for no more earnings surprises and EPS are positive going forward, the EK$ 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$128.8m, +13.1% ...". Steady Growth in Book Value Earnings Per Share -(3 negative years out of the last 10) ---------------------------------------------------------- Seems like the company is well positioned to take advantage of any marginal growth in Europe and/or U.S.. I am looking at selling some of my E.I. du Pont de Nemours and Com (DD) to finance the trade. DD may see their growth from Solar Panels slow due to a lot more competitors flooding their markets w/ cheap panels and a slight slow down in China's growth. Stock is near it's 10 year high and selling well above it's EK$ value. EKS