Mechel OAO (ADR) (MTL)

Mining focus company!

Close your eyes and say it with me. "Mechel-Lecha High, Lecha-Hiney-Ho, Mechel-Lecha-52-week high Lecha-Hiney High Ho!".

.5

Wish I had got in on this one at $4.

Who likes coal?

Result of my screen: High EPS, > 20% 13 week change and $10 per share in cash

--Demand for steel in Russia is expected to be high in the coming years. Mechel and its subsidiaries have implemented a $5.2 billion investment program for 2008–2012, focusing on the development of its Mining and Steel businesses. About $3 billion would go to the Mining business, $2.2 billion to the Steel business, and $42 million to energy projects. Of this, $1.3 billion will be invested in the development of the Chelyabinsk metallurgical plant (Mechel’s primary steel production facility) until 2011.

The investments should increase total steel capacity by 35% to 6.5 million tons, besides cutting costs through a complete changeover to concasting. Chelyabinsk will increase its flat stainless sheet production by seven times to 300,000 tons and expand its range of construction and engineering steel. As a result, steel production should rise 12% and rolled products output should grow 26%.

Mechel is looking to invest $1.2 billion in the Mining segment. Part of the spending will be used to increase coal production at Southern Kuzbass by 47% to 21 million tons by 2011. Mechel recently obtained controlling stakes in the coal companies Elgaugol and Yakutugol (68.86% and 100%, respectively), paying $2.34 billion. The companies produce coal in the East Siberian region of Yakutia and had been the largest remaining standalone coal producers in Russia prior to their acquisition by Mechel. Their output is mainly high quality coking coal. Yakutugol produces 10 million tons of coal per year, most of which it has been selling to customers in Japan and Korea. The company plans to increase this output to 15 million tons and redirect it to the domestic market.--

--Troika Dialogue raised MTL target to $ 19.8o and changed it rating from hold to buy--

--JP MORGAN CHASE & COMPANY, WELLINGTON MANAGEMENT COMPANY LLP, BlackRock Group Limited, VANGUARD GROUP. Its comforting knowing that these fellas have invested into them. --

Basic materials will bounce back, and Russia being a BRIC country will do well

Solid company fundamentals with a thinking management that has tried to keep operations as normal through the problems with Putin targeting them in a rage that breakdown the stock after he change of heart in pressuring the goose of the sector the tax brake announce is helping the recover to a support level where it should be ,

> expensive stock, had a great run in the past few months
> Russia has a great degree of political risk
> commodities are still in a bubble, must burst sometime

Infrastruture are coming along and this company is
in a strategic world region.

Russian Government favors company.

oao

Because of Russian government restrictions this stock has a high chance of losing its chance to swing back into its winning position despite the changes already being made. As one broker wrote "possibly too little ,too late"

steel!!!! Bilding Material . China will buy it.from Rassia. They are Comrats.

Russian President Dmitri Medvedev warned CNBC viewers of "alarming figures" when talking about his economy on June 2. His alarming figures were rising unemployment and falling industrial production -- and those two figures are fairly alarming everywhere we look, not just in Russia.

In Russia, however, they've taken an especially large toll and put GDP on track for somewhere around 7.5% this year, a level not experienced since the fall of the Soviet Union twenty years ago. It fell almost 10% year-over-year in the first quarter alone. Foreign investment plunged 30% and that referenced unemployment figure is on its way to double-digits, as it is in the U.S. as well.

The near term, then, is far from rosy in Russia.

However, the Russia that emerges from this credit crisis will be in a far better position than the one that went in. The Kremlin has taken control of its currency, acquired the country's most savvy international business people, and has already used those new assets to begin managing the political connections it will need to get the most out of its natural resources in the coming energy crunch.

There's too much relief in the air, too much anticipation of recovery, and too many smart investors on to the new teamwork happening between private companies and the Kremlin.

As commodities rise, this stock will go up. And commodities will rise because there is a fixed supply of the world's resources. Plus, since it is largely a steel play, the stock should go up as Russia and Eastern Europe continue to develop.

Great place to be when the turnaround hits.

The demand for steel will pick up as construction in high need areas such as Russia and China will pick up before that in the US and EU.