Contrary to what downrampers say, OMH is now a BUY.
"While commodity prices are out of OMH’s control, we continue to believe that the low cost nature of its operations globally provide a moat for periods of weakness such as these, allowing it to remain profitable throughout the cycle. Annualised Ops CF of $100m after such a meaningful commodity price drop is evidence of this;
We have lowered our price forecast for FeSi alloy to US$1,200/t in the short term (vs $1,350/t prev.) and have adjusted product mix to align with updated guidance. The result is a slight decrease in Valuation to $1.60/sh (vs $1.72/sh prev.);
We maintain the Buy recommendation on OMH. "
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