Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

I am not that "burnt" on OMG, I have a cushion of $3.36 and two servings, one is down about 1.5 the other about $.5. I was looking for a run to the $5.15 to unload the second position, it did not happen. The selling is emotional, another law firm is suing. What will they sue on? Insider were buying at higher prices, conditions changed and they did not sell on that inside information, just ambulance chasing.... They do not have major debt problems since only a small portion of their debt is bank debt, the rest are debentures that cannot be called. The debt service is less than the depreciation charges (and that includes debt service on debentures), and though the cobalt business (30% of total business?) is not very good, the rest of their business is doing fine and has been growing YOY. The weakness in cobalt is temporary (two to three quarters) and they have already taken a bigger than necessary hit on inventories.

Zeev