Certainly this stock has had some major swings in its history. But I like this on based almost entirely on straight fundamental analysis and a good common sense approach.
OMG is small enough to be versatile in a field of big players like DOW, which is 30 times its size. With a nice low P/E hovering in the mid-5 range (compared to a 30+ for the industry) and ROE at 20%+ and an OM of 15%+ The potential for upside in the long-term (1+ year) is high. Not to mention a fantastic balance sheet with free flowing cash to continue to spurn their impressive growth and a book value higher than their current share value. Debt to Equity is only 0.04 long term and total.
As many stocks will continue to tightly mimic the Indexes over the next few months, and many investors will watch their favorite picks fall into a moderately tight swinging range, this company should remain a strong pick for some weeks to come.
But thanks to the small size of OMG they will be better able to adapt to the beaten US dollar and changes to come in the world of manufacturing in North America. Such versatility allows for innovation and, beyond that, a poised striking position. As larger competition painfully and sluggishly cuts back extra costs, they will thus give market share in small bites. To them a tiny loss is a huge gain for OMG. 1% to them is 25% to this small company.
Over the long term OMG will adapt faster, and if they continue to run their business and keep the numbers similar to where they currently stand, stand a much greater chance of doubling, tripling, or increasing their market share by even greater amounts.
$31.83 (08/01/08)
