Share price blocked at $0.82-0.84. OMH share being shorted

I agree with Rocket's observation that OMH share is now being shorted and the short seller is holding down the price at $0.82-0.84. The short selling in the past (at different levels $0.34, $0.41, $0.57, $0.68) have all been crushed.

The reason that the short is unable to hold much longer is that the short seller is going against the tide in the case of OMH:

1) FeSi prices has surged from a recent low of US$1,000 to now US$1,500++. This is equivalent of huge GPM of 50%, generating strong cashflow for OMH in 2021/2022. This FeSi price was achieved in 2018 when the company reported profit of A$160m, and OMH share price hit a high of $1.70. Current price of $0.80 is supported by the recovery of FeSi prices. Even now, OMH is still grossly underpriced with forward FYE 2021/22 PE of only 3-5x and its current price of A$0.80, is still 50% below its high of A$1.70 in 2018.

2) The share price of Ferroglobe has more than doubled since 29 Jan, and jumped 55% on 2 Feb, and a further 20% on 3 Feb. OMH has stronger profitability track record than Ferroglobe and definitely a better bet from all aspects.

3) When compared to its industry peers, OMH should be trading closer to $2-3. 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. It is especially so when you compare with Press Metal (listed on KLSE) at PE 72x. AT PE 20x FYE 2021/22, OMH should be trading closer to $2-$3.

4) Commodity sector to go into multi-year super cycle (Goldman Sach) will provide support the backdrop for strong profit in 2021/22

5) OMH Bursa listing should be the key catalyst event that will propel the stock price to a new high which could drive its PE valuation closer to that of Press Metal (PE 72x) Bursa listing will bring OMH into the spotlight and the path of liquidity flow.