Commodity prices jumped to new highs as signs of economic recovery raised hopes of increased demand.
Prices for everything from copper to oil to timber have skyrocket as the worlds largest economies recovers from the pandemic, with growing signs of shortage across markets
Bloomberg commodity spot index rose 0.7% on Monday, a level not seen since 2012.
Hedge funds have increased bullish bets on commodity futures for the three consecutive weeks. Massive government spending and loose monetary policy have stoked fears of inflation which has also fueled the bull run. Commodities are typically seen by investors as a hedge against inflation and a weaker dollar
OMH has benefited greatly from the sharp rise in FeSi and MnSi prices, with Gross Profit Margin at >40-50%. This will certainly boost OMH profit to >$100m or even matching its 2018 level of $160m. The upcoming Bursa listing should give it a re rating and we should expected share price to hit its all time high of $1.70 soon. it's certainly early stage for OMH share price for patient investors.
OMH Price at posting:
93.0¢ Sentiment: Buy Disclosure: Held
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