No Alpha with Omega

Written by GSCR Staff   
Thursday, 23 January 2014 08:26

It seems that these days everyone is looking for alpha whether it be in th einvestmenr world or on the football field. We hope we are not offending any of our readers, but anyone surprised by Seahawks defensive back Richard Sherman’s post game antics need a reality check.  NFL football has created an ultra competitive environment with multi-million dollar contracts as rewards for achievement at the highest level.  This ‘spirit’ is part of what makes these athletes elite.  Wouldn’t it be funny if we had some of these antics at the World Economic Forum in Davos, Switzerland this week? It certainly would spice up the ratings on the financial networks.  The egos here are just as large and include alpha females as well.

Along with any alpha is the end, omega.  Our Market Monitor pick from a few months ago, Omega Protein Corporation (NYSE – OME - $11.30), may be have already passed the end of its run.

  The stock peaked at $14.89 right before Thanksgiving on a seasonal accumulation phase.  The Daily Moving Average is very bearish and the forward P/E is just under the trailing P/E, a bad sign for basic valuation.  Getting rid of OME now still would give our readers nearly a 6% profit from our original profile price.

Have a great day!

Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.

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