I added more shares to my portfolio with the purchase of Owens & Minor Inc. (OMI)
81 shares @ $15.37 on 2/15/2018.
79 shares @ $16.37 on 3/1/2018.
This increases my forward 12-month dividend income by $166.40 to a total of $5,085.98
I also updated my portfolio page to reflect the change.
So this is my third stock purchase of this company in less than a month time frame. I first bought Ownes & Minor on January 26. I bought 54 shares @ $21.95. If I bought a company and it drops 10-15% right after my buy, I will definitely buy more shares.
Nothing in the fundaments has changed since I bought shares. The only thing that has changed has been the market overreacting. Yes, revenue is lower at $9.32 billion vs the prior year of $9.72 billion. Earning has taken a hit as you see from the below FASTGraph picture.
However, with the new tax reform and the current acquisitions, CFRA expects earnings growth of 4% for the next three years. Currently, OMI has a dividend yield of 6.1% which represent only a 64% payout ratio based on last years earning of $1.61.
So mixing in high dividend yield and higher earnings make this company very attractive.
I am currently a full position and do not plan to add any more shares unless there is a significant price drop.
OMI is undervalued, and I recommend it a BUY at this time. I have a fair price of $20.98 which means that OMI is 22.6% undervalued based on today’s price of $16.08 (3-7-2018).
What do you think of the company? Plan on owning it? or why not?
Thanks for reading, and don’t forget to connect with me.
Image by Sira Anamwong at FreeDigitalPhotos.net