I cann’t see earning recovering any time soon. If economy slows down, advertising spending would be one of the first things to be cut and I think, for OML most of their cost is fixed (like lease payments), so their earning will get squeezed.
And if WFH trend continues and ppl do less travel, the macro demand for outdoor spending will not continue to grow as it did pre COVID. But on the hand mgt did a good job by doing a CR and taking out part of short-term cost. So, I think in the short term they can survive and from my memory they also have a strategic investor in the register (so if sudden drop in price, there can be a takeover). Shorts have come down since CR as well.
So, personally I would not buy at current level, but I have a buy order at 55c, just in case if it suddenly drops back to the CR level c.50c.
OML Price at posting:
97.5¢ Sentiment: None Disclosure: Not Held
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