Logic Gate Capital Management, LLC – http://www.logicgatecapital.com Mr. Market Blog – http://www.mrmarketblog.


Company Name: Symbol: Market Capitalization (millions): Current Share Price TBV CAGR (FYE 2004 – 6/30/2010): Fiscal Year Ending
(All Figures in $ millions)

OM Group, Inc. OMG 920.40 $29.82 17.70% 12/31/2006 644.54 404.24 373.90 80.42 12/31/2007 659.76 1.65 315.71 21.65 12/31/2008 777.15 26.14 491.64 141.41 12/31/2009 862.71 574.98 139.76 MRQ** 747.61 140.00 428.73 85.07 -

Tangible Book Value (TBV): Total Debt and Capital Lease Obligations: Net Current Asset Value (NCAV)*: Free Cash Flow (FCF): Dividends Per Share: Investment Thesis:

The company is trading at 123.1% of TBV and 79.3% of Book Value. Additionally, the company has a strong balance sheet with just over 400 million in cash and 140 in total debt. The debt was provided by the company’s revolving credit facility (3/2013 maturity), which has a capacity of 250 million with the Lenders option of increasing it to 325 million. As of 6/30/10 the average interest rate applied to the facility was 2.9%. Finally, we estimate that the company’s FCF will range from 150-175 million for FY 2010. Assuming, the FCF is 175 million this gives the company a current EV/FCF multiple of 3.77.

* Net Current Asset Value is calculated by subtracting Total Liabilities from Total Current Assets ** For most recent 6 months with regards to Free Cash Flow
DISCLAIMER - PLEASE READ Logic Gate Capital Management, LLC (www.logicgatecapital.com), "LGCM", is an Investment Adviser, registered with the State of Arizona and Nevada; edits Mr. Market Blog "MMB" and the Information in/ on MMB comes from independent sources believed reliable, but accuracy is not guaranteed and has not been independently verified. All material published in/on MMB is subject to change without notice from LGCM. LGCM’s security recommendations disclosed in/on MMB are the opinions of LGCM and the performance results of such recommendations are subject to risks and uncertainties beyond the control of LGCM. LGCM is adviser/manager of individual client investment accounts and as adviser LGCM, or its associated persons, may purchase and sell securities identified, recommended and analyzed in/on MMB. In consideration of performance objectives of its individual client accounts, LGCM may purchase and sell securities identified in/on MMB without notice to newsletter/website subscribers and may take a position in such securities that is inconsistent with the recommendations disclosed in/on MMB.

Logic Gate Capital Management, LLC – http://www.logicgatecapital.com Mr. Market Blog – http://www.mrmarketblog.com

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