Eyeing a few good DSP plans

I have been on the look out for a few good stocks with a DSP plan. The one stock that I have had in my tracking portfolio since last year is:

Omnova Solutions (OMN) (Google Yahoo Earnings Chart)

I began tracking Omnova, a small cap stock, starting April of last year when it was priced at $5.30. I had completed a New Account Application for Omnova under the then Bank of New Your Direct Stock Purchase Plan. I had signed up for monthly purchase of stock via direct debit from my checking account but had failed to enclose a check for the initial investment of $510.00. I assumed that the initial investment would also be directly debited from my checking account. However, the new account application came back with a letter stating that the check for the initial investment was not enclosed. I got sidetracked for a good part of 2007 from April through October due to family obligations so I never returned the application with the check. The company caught my eye again earlier this month when it released 1st Qtr 2008 results and the stock fell by almost 10%. It has since bottomed further to $2.98 (EOD April 11, 2008). That's a good 47% drop since I first looked at it last April.

After reviewing the 1st Qtr results here is my conclusion:

Positives:

1. Net sales rose 16% for the first quarter to $190.6 million from $164.8 million last year
2. Net loss narrowed to $3 Million compared to a loss of $ 5.1 Million last year
3. Operating profit of $2.5 million, down only $0.3 million despite $5.9 million higher raw material cost

Negatives:

1. Raw material cost higher compared to last year
2. As a consequence of increased raw materials cost the cost of goods sold increased 19%

All in all, it was not a bad quarter. There was not a lot of guidance provided for the remainder of the year but my guess is that costs will continue to be high, possibly increasing even more. I am keen on initiating a purchase in OMN using the DSP plan offered through BNY Mellon Shareowner Services. My timeframe for accumulating and holding the stock would be 2 years at the minimum. Here is the link to the InvestDirect Search page at BNY Mellon.

https://vault.melloninvestor.com/jsp/enroll/Search.jsp

You can view the Omnova Solutions plan under the letter O. The plan highlights are:

Minimum Initial Investment: $500
Initial Check/Electronic Purchase Service Fee: $10
Initial Purchase Trading Fee: Company Paid

Minimum Periodic Electronic Purchase: $50
Periodic Check/Electronic Purchase Service Fee: Company Paid
Periodic Purchase Trading Fee: Company Paid
Dividend Reinvestment Service Fee: Company Paid
Dividend Reinvestment Trading Fee: Company Paid

Sales Transaction Service Fee: $10
Sales Transaction Trading Fee: $0.10/share:

It is a fairly inexpensive DSP plan. The only cost to participate in the plan is the initial purchase fee and the sales service/trading fee. There is no cost to periodic monthly purchase or reinvestment of dividends.