The huge spike in Ferroglobe share price of 24% is an indication that the market is starting to load up on industrial material stocks. Omh is a much more fundamentally sound company with track record of profitable business over the last 4 years should benefit even more from the current surge in ferroalloy prices. (Ferroglobe is loss making for the last 3 years, and saddled with high debt and high electricity/operating costs). The news of more immediate $1.9 trillion stimulus of from the new Biden administration (to be followed by infrastructure stimulus) should continue to underpin support for a higher ferroalloy prices. I believe a spike in omh should be coming soon and we can see a similar price surge of 20% like Ferroglobe really soon. what we seeing now is just small money of retail following into omh, this will change very soon once they get into more roadshow leading to Bursa listing. The Big Bang will come when the Asian funds start to get interested in omh. Remember that omh PE is only 5x (2021/22) compared to Press Metal PE 72x, a big mis pricing gap. Assuming at PE 30x (not impossible in current onset of commodity bull), OMH should be trading at $4-5 (this is another 6-7 bagger from current price).
OMH Price at posting:
76.5¢ Sentiment: Buy Disclosure: Held
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