OST is very sensitive to the IO spot price. In my view it is "over sensitive" to this. The last time the IO price dropped below $130/T the sp dropped to low seventies. The IO price has again fallen below $135/T and again crash goes the sp.
I get that there is a fair load of debt and that large Steel business is borderline, so the company is very dependent on IO. But I still think the sp is oversensitive to IO price.
Therein lies both the opportunity and the risk in trading this stock. Who has a view on where the IO price is heading next?
FT
OST Price at posting:
90.0¢ Sentiment: Hold Disclosure: Held
