ORI could be on the menu for Wesfarmers (WES) fitting nicely with its chemical business. Importantly ORI is now attractive at current levels after being smashed in 2020, this leading provider of explosives for the mining industry which is enjoying a huge uplift as reflation takes hold. As commodity prices rise miners worldwide will consider resources previously not viable and these are likely to require more explosives and chemicals for extraction.
Victorian based ORI delivered a weak first half result but we feel moving forward the business is well positioned to turn the ship around helped by an easing of COVID restrictions. Investors are clearly looking for post pandemic bargains and these have become thin on the ground, I can see ORI enjoying some attention sooner rather than later.
MM likes ORI at current levels.
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