Positive Market MoodInvestors’ mood brightened and positive...

Positive Market Mood
Investors’ mood brightened and positive stock momentum continued as more market uplifting news continue pouring in:
1) Yellen supports big spending and urge lawmakers to “act big” on Covid relief and not worry too much about debt, spurring risk on tone. Expect big infrastructure stimulus to rebuild the US economy.
2) Better than expected sentiment survey in Germany
3) China 2020 FDI up 6.2% to record despite ongoing pandemic

How OMH will likely to benefit:
1) Ferro-alloy prices, specifically FeSi is current at $1,300-1,400 and could hit even higher in the current bullish commodity environment. At the current ferroalloy prices (FeSi at $1,300-1,400 /mt), we are back to the 2018 level when OMH was making A$160m profit. Granted that 4 furnaces are currently not operating at the moment, but they will ultimately be in production soon. Remember that stock market is a forward looking barometer (9mth – 1 year ahead), those furnaces will all be operating by then. That’s why we are talking about forward earning in 2021/2022.
2) Ferro-alloy prices is expected to be supported going forward:
- China continues to place more importance on its environmental policy and control the pollution from heavy industries (such as the smelting factories which is low value but contributed hugely to pollution)
- US will need more steel production in undertaking their infrastructure redevelopment and this will create more demand for Ferroalloy. Given that US does not produce much on their own, this is likely to cause a serious shortage of supply, which will support higher Ferroalloy prices

OMH - GROSSLY under priced
If you look at the current price of A$0.85, it is still 50% below its high of A$1.70 in 2018. In term of PE it is still trading at rock bottom PE of 3-5X FYE2021/2022. This is sharp contrast to market peers PE, and it is especially so when you compare with Press Metal at PE 72x. If you look at Lynas, their production level at 75% (quite similar to OMH), net loss of A$19m for FYE Jun2020, yet their share price is all time high at $4.66 (more than double its all time high before Covid), raised A$400m share placement, 8x bigger than OMH.
So you can see the reason why I keep reminding investors/shareholders how GROSSLY UNDERVALUED OMH is when you compared to its peers.

OMH Price Surge to Continue
The price surge for OMH is only just beginning. We may even see OMH going back to its recent high of $1.70 by 1Q2021 when the buying momentum continues and more investors/funds start to discover the real value of OMH. I believe the publicity surrounding Bursa listing, couple with clever IR program, should give it the publicity/price booster that it sorely needs.