Cramer on Tuesday revisited Omnova Solutions, a stock that stumped him during the Sept. 30 Lightning Round.
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Cramer on Tuesday revisited Omnova Solutions, a stock that stumped him during the Sept. 30 Lightning Round.
Omnova is an “extremely speculative” company, he said, that operates in everything from specialty chemicals to decorative products like wall coverings and laminates to single-ply roofing. The stock’s had a monster run, soaring 932% year-to-date. Needless to say, investors who took part in the move should cash out at least some of their holdings.
But Cramer said OMN is still a buy on any pullback. Omnova’s new products have been successful, the company’s finding new clients, and the stock’s very cheap on earnings. The price-to-earnings multiple is just 17 despite an expected 67% growth in earnings by next year.
So big run or not, this stock works for any investor who wants a little speculation.
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