OM Holdings OMH is the most undervalued stock on the ASX.
Using the cheapest power in the world at US$0.034/kWh with a 20 year fixed price contract producing some of the most important alloys requiring the highest energy for steel production and now Silicon metal for consumer electronics and solar panels.
OMH had free cash flow of US$197 million ( AUD$295 million) last year and currently has a share price of 72c valuing the company at just A$530 million. At that time OMH was only operating at 75% capacity.
Fosters Stockbroking has a target of $1.81 /share.
Every tonne of steel requires ferrosilicon and silico manganese and OMH is the world's cheapest producer due to its 20 year power contract using hydro power. The company is also enjoying a Tax holiday and has recently released a dividend policy which could result in high dividends from now and into the future.
The thing about OMH is that almost nobody knows about it, so its flying under the radar.
OM Holdings OMH is not a risky play but since its under the radar its rather illiquid at times. Judging from the few posts on Hot Copper its obvious that not many people know or understand the stock.
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