Mechel OAO (ADR) (MTL)
The Company is a low-cost integrated mining and steel group mining business focused on mining products used in the production of steel, primarily coking coal, iron ore and nickel. It also produce a significant amount of steam coal.
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Who likes coal?
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> 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
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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"
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Russia? LOL. Chapter #11.
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Down down down.
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WhatGoesUpComesDown
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This stock is going to TANK. watch it start to drop from its high.
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Stock in two bubble industrys, steel and coal.
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Although MTL appears to be a good company and has had a good run I suspect under performance starting soon, leading up to it's next eps report and after. Based on expected '07 earnings, the coming quarters are likely to show considerably less growth compared to yr ago quarters, possibly ranging from 65% to -20%. Also, even though it has had a nice 2-wk 25% runup, price-vol action looks like profit taking is setting in.

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