OM Group is a producer and international marketer ofmetal-based specialty chemicals and powders. The Company manufactures and sells more than 425 specialty chemical products. For the FY ended 12/31/00, revenues rose 75% to $887.7M. Net income rose 28% to $71.5M. Revenues reflect an increase in physical volume of products sold due to the acquisition of OKN. Net income was partially offset by higher interest and S/G/A expenses due to the acquisition.

May 13, 2001

OM Group, Inc., is a vertically integrated producer of value-added metal-based specialty chemicals. The Company supplies more than 425 different products to 1,500 customers worldwide. Shares of OMG were stuck in the $48-$55 range since the beginning of the year. The stock started to move higher on heavy volume following its earnings release on April 24th. On Wednesday, OMG traded to an all-time high of $58.45 and we believe that the stock could continue to hit new highs. We are also looking for a stock split with the July earnings release. The stock is currently trading above its historic split range and the company has enough shares for a split with 60 million shares authorized and 24 million shares issued. From a technical standpoint, OMG has support at Thursday’s intra-day high of $57.40 with additional support at $56.58, the 5-dma. Resistance is the all-time high of $58.45 and then the $60 mark. Traders may consider opening new positions on a bounce off of $57.40 or a breakout above $58.45 on volume greater than 60,000 shares by noon. We plan to set stops at $53.88 to limit potential losses.

Picked on May 13th @ $57.96
Change since picked +0.00
Stop Loss @ $53.88

May 17, 2001

OM Group continues to hit new highs. On Thursday, shares of OMG traded to an all-time high of $63.98 before running into some resistance. The stock ended the day at $62.80 on heavy volume of 202,000 shares. OMG has made five consecutive higher highs on top of higher lows and volume has been improving. However, the stock may be due for a round of profit taking after nine days of gains. Until then, OMG has support at Thursday’s intra-day low of $62.60 with stronger support at the $62 mark. Resistance has come in at Thursday’s intra-day high of $63.98 and then $65. A bounce off of $62.60 or a breakout above $63.98 on midday volume greater than 60,000 shares may be possible entry points. We have bumped our stops up to $62 to protect recent gains.

Picked on May 13th @ $57.96
Change since picked +4.84
Stop Loss @ $62.00

May 15, 2001

OM Group just keeps on keeping on. Today the company’s stock rallied another $1.20 to close at an all-time high of $59.80. Much of the increase could be attributed to yesterday’s report that the company’s cobalt sales volume was up 18 percent in the first quarter and that recent increases in battery demand from the battery market have limited availability of material. OMG is breaking out after four months of consolidation, so it may continue to trend higher on average volume due to improving fundamentals. For now, OMG has support at Monday’s intra-day high of $59.01 with additional support at the 5-dma at $58.04. Resistance was taken out on Tuesday, so new resistance may show up at $60 or $61. Look for entry points on a bounce off of $59 or a breakout above $60 on volume of at least 60,000 shares by noon. We have moved our stops up to $56.75, just under the 10-dma, to limit potential losses.

Picked on May 13th @ $57.96
Change since picked +1.84
Stop Loss @ $56.75