A Brighter 2021: Investor bullish of stocks/commodities

Key Theme going into 2021:
- Since Nov/Dec 2020, Stock market started broadening out beyond tech/mega stocks. Interest gathering into value stocks, commodities, small cap, and non US. With vaccine, laggard stocks to join in rally in 2021
- Goldman Sachs: Commodity Super Cycle - A long lasting bull run for commodity/industrial materials going into 2021. In fact the commodity bull run is already underway in 4Q2020 with overall price surge across all metals, and more monies are trickling into the commodity market/stocks.

How OMH will benefit from the above macro trend:
- Omh is a super laggard in the commodity/industrial material sector. From Valuation perspective, it is currently trading at PE 4x based on 2021/22 earning. Alloy prices, specifically FeSi, has strengthened from $1,000 to $1,350. At current alloy prices, omh should be able to hit $100m profit, like what happen in 2017/2018.
- Compared to its peers, omh PE 4x is way below Press Metal PE 72x. Even at 20x PE, Omh should be trading at $2-3. Current price is discount of 60-70% of its fair value.
- Share Price rally only started in Dec which saw the share price moving from 34cts to 58.5cts (72% spike in 1 month) and vol has picked up significantly compared to pathetic low trading during the crisis. This price spike is reminiscent of the rally in Jul 2017, where its share price rose from 20cts to $1.70 in just 1 year (9x return), probably the best performing stock then.
- At 58cts, it is still a laggard waiting to be discovered with more liquidity shifting into the commodity sector.
- The catalyst event that will lead to re rating of omh is the Bursa listing and is currently ongoing, and hopefully can be completed in next 1-2 quarter. Bursa listing should give it the spot light that is lacking on ASX, and expected to generate a lot more new retail investors and institutional funds to kick off further price rally.

Investors coming on board now, can expect a further 4-5x upside or more!!! with holding period of 3-6months on optimistic side. Remember OMH rally more than 9x within 1 year in 2017/2018. Now omh is only playing catch-up with its peers. In the current bullish stock sentiment, with most stocks trading at all time high, I don't think it's easy to find a laggard stock like omh with such mispriced valuation and so much upside potential and share price breakout is just bound to happen.

Happy trading 2021