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 20, 2001

OM Group sold off after hitting record highs in each of the last four sessions. On Friday, the stock fell to an intra-day low of $60.00 on heavy volume of 463,000 shares. We were stopped out at $62 so we are dropping OMG tonight.

Picked on May 13th @ $57.96
Profit/Loss = +4.04 (+7%) (Stopped out Friday @ $62.00)
Best Profit = +6.02 (+10%)