This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

OM Group Shares Rise After Upgrade

NEW YORK (AP) â¿¿ Shares of OM Group Inc. rose Wednesday after an analyst upgraded the chemical company to "Buy" from "Hold," saying that the stock's sharp decline combined with a positive business outlook should attract investors.

THE SPARK: KeyBanc Capital Markets analyst Ivan M. Marcuse said the stock is now a good value for several reasons, including a positive reception of its incoming chief financial officer by Wall Street and stabilizing cobalt prices.

The company said two weeks ago that it hired Christopher M. Hix as its new CFO to start Jan. 3. Hix most recently was senior vice president and CFO of Robbins & Myers Inc., which makes and services equipment for companies in industries such as energy, chemicals and pharmaceuticals.

THE ANALYSIS: Marcuse predicts that following the completion of a recent acquisition, the company will start to be more open about its earnings and growth potential. He put a $30 price target on the stock.

"Over the last several years, OM Group has worked to transform itself from being primarily a metal conversion company into more of an engineered materials company. In addition to periods of volatile market conditions, the combination of a multitude of factors including controversial acquisitions, fluctuating cobalt prices and difficulty in communicating its plan for growth has equated into a poor shareholder return for a long-term investor," the analyst wrote in a note to clients. "However, now ... we see limited downside and view (the stock) as a compelling opportunity."

SHARE ACTION: Shares rose $1.37, or 6.6 percent, to $22.12 amid a broader market rally following the news that central banks around the world are working together to ease financial pressure. The stock is still near its year low of $20.13.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,095.19 +57.22 0.32%
S&P 500 2,112.71 +3.79 0.18%
NASDAQ 5,067.8890 +7.6430 0.15%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs