Yahoo has been active in the domain buying and selling space the past few months. Today, it was revealed to be the buyer of OMG.com, which sold last week for $80,000, according to Domain Name Wire. It's a great domain, and a really, really great price especially considering the image-centric TMZ.com-rival it has called yes, OMG. (Note: I had no idea it actually existed, at least partially because it didn't have the omg.com domain — well, and also cause I'm not into celebrity gossip. But supposedly, it's big.) Of course, Yahoo has a history of obtaining good domain names and doing nothing or next to nothing with them. It sold contests.com in June for $380,000 after sitting on it for many years. It also sold WP.com to WordPress parent Automattic in April of this year.

5/8/2009 1:12 PM EDT

I've taken a long position in OM Group (OMG). OMG operates prdominantly in two segments: Advanced Materials and Specialty Chemicals (especially used for memory disks and circuit boards). It is a big cobalt refiner, so the price of that underlying commodity is also a driver on the stock price.

It's a conservatively run company with $272 million in cash and only $26 million in long-term debt. It's most recent quarter, announced yesterday, had a small loss. However, it's expecting to stay cash flow positive this year and a weaker dollar, recovering commodity prices, and increasing chemical demand (with Dow's recent earnings being encouraging) should all help the company's future results.

The stock sold off yesterday and has bounced back today. In my view, there's still a lot of value here. The stock currently trades an a trailing 2.2x Enterprise Value to EBITDA ratio. That's just too cheap, when you consider DOW's is currently 7.4x.

As OMG delivers future positive quarters, expect its stock price to jump.

Position: Long OMG

Originally published in RealMoney.com

Keybanc is out with a yet another major Specialty Chemicals call downgrading OM Group (NYSE:OMG) to Underweight from Hold with a $15 price tgt. Firm notes that during 4Q08, cobalt prices moved from $29/lb in October to $16/lb in November to about $11/lb in December, making the 4Q08 average price $17/lb. They had previously based their 4Q08 EPS estimate of $0.28 on cobalt at $23/lb. Given the precipitous drop, they now estimate 4Q08 EPS for OM Group at a loss of $0.18, bringing revised 2008 EPS estimate to $4.60. Prior 2008 EPS estimate was $5.05 Using a cobalt price of $11/lb (vs. $21/lb previously) for 2009, Keybanc's EPS estimate is cut from $2.50 to $0.80. They again caution that cobalt prices are highly volatile with swings that can be large[More...]

So I am sitting there, and the market's down around 4%. The S&P had breached the October lows, and I'm loaded with short positions, including a pretty large position in the ultrashort EEV. Then it suddenly occurs to me, everybody's watching this level, including the government. And they have hundred of billions of dollars to buy stocks! I started thinking, if I'm Hank Paulson, I'd be buying hand over fist now to protect the low, maybe put a floor under this market. So I covered a bunch of positions, although unfortunately too few, and what had been a magnificently profitable day turned into something quite mundane. That was some gut-wrenching, exhausting action. So call me a tin-hat conspiracy guy, but I think we would still be dropping if it weren't for the plunge-protection team. All the same, I will respect the rally, since it is exactly what I was looking for in order to move to a bullish orientation. I do not think we have seen the end of the bear[More...]