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OM Group Inc. Message Board

  • badgerstrong badgerstrong Nov 6, 2002 10:33 AM Flag

    Very stupid to stop carbide production

    industrial carbide is in much higher demand than cobalt. Every machine tool in existance uses carbide tooling and only sometimes cobalt.

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    • you don't make machine tools out of powdered tungsten carbide powder. perhaps you should read the press release carefully. you might notice that the company is in negotiations to sell its tungsten business. if you look at this companys assets 1.2 billion in debt is no big deal. they just sold a 10% interest in a copper mine in germany. and does anyone remember how they paid for the degussa acquisition? 4 million shares now worth 26 million were sold for 225 million, and the half of that business that was not needed was sold for 500 million and the deal closed on sept 10, 2001. lucky that deal didn't close a few days later or it might not have closed at that price. a restructure is appropriate, and with the republican control of senate and house and supreme court you will see a large increase in cobalt pricing and demand due to iraq. lots of depleted uranium penatrators will be needed to destroy all of saddams bunkers in the sands of bagdad. a selloff in the stock to maybe 15 dollars a share was warranted. NOT 6.50. look farther ahead than the end of your nose. great buy at these levels

    • But we're in a recession (despite what the administration says) and manufacturing is way down.

      No need to machine when companies are laying off by the thousands. No machining = No tungsten carbide or cobalt, for that matter.

    • You're the stupid one. The operation was a money losing one. That's why they cut it, genius.