- Net revenue in the first quarter of 2008 rose by 64.1% to $2.3 billion from $1.4 billion in the first quarter of 2007. Operating income rose by 112.3% to $642.1 million, or 27.58% of net revenue, in the first quarter of 2008, compared to operating income of $302.5 million, or 21.32% of net revenue, in the first quarter of 2007.
- Mechel reported consolidated net income of $500 million, or $1.20 per ADR / diluted share, an increase of 162.2% over consolidated net income of $190.7 million, or $0.46 per ADR / diluted share, in the first quarter of 2007.
The stock is finally showing some relative strength in the $46s, and once it breaks north of the 50 day moving average of $49 it should put on a typical Mechel run in the ensuing months. I added a touch today (early in the AM - did not realize earnings were coming out today) to get us back to 1.5% of portfolio after seeing how pathetic it's forward P/E ratio was.
[Jun 19: Mechel Could Raise $2 Billion in Private Placement Offering]
[May 29: Mechel Earnings]
[Apr 9: Mechel Continues to Acquire Most of Eastern Europe]
[Dec 12: Mechel Reports Earnings, Considers Mining IPO]
[Nov 5: Two New Foreign Positions Added Today]
Long Mechel in fund; no personal position
7 comments:
With such great earning, I am surprise that the today volume was so low. I can only conclude that maybe people do not believe the report or do not like that it is a Russian company. see http://www.fool.com/investing/international/2008/07/10/go-slow-with-russian-stocks.aspx
Mark,
In response to you earlier comments:
1. I don't particularly like China... I like ridiculous, long-term, secular development. As Jim Rogers wrote: There's a Bull Market in China. I would love to invest in Indian companies as well, and more Eastern European companies, and especially Middle Eastern Oil related companies (the Islamic Utilities index has been unbelievable for quite some time).
However, as I am a company of 1 and do not have global reach (unless I mess around with the lampshade atlas I have in my house... tacky but kind of amusing)... I look at places that have this growth that I can actually access. China is my first stop. Brazil is big too. I am not as up on Eastern Europe India or Russia but will get there. Others as well. MTL and PBR are two of the Europe/Brazil names I like best.
2. Small caps have done well for me and are fun stories. The hidden gems can be just that... however one has to know how to manage risk.
3. In all seriousness my heart does go out to you. In your blog you have attracted a very uncharacteristic swab of America: people that like to think for themselves. I for one am a guilty party. Have you ever considered getting a...dare I say... Trade Mark... for your invisible hand? Then Cramerica (Robin Hood's Brother) would be forced to pay you royalty or at least feature you on the show... "I'm giving the Rising Tide Growth Fund two thumbs up (House of Pleasure!)... Buy Buy Buy
Buy Buy Buy."
Oh well... everyone can dream.
Keep up the good work and performance though and I think that you will attract the attention and support you deserve... ask people to spread the seed and you may also want to apply to the Forbes.Com Blog network site... they are looking for "a few good blogs'...
TM,
Can u place trailing stops on trades? I see they allow limit orders. Just wondering as the switch from SZK to UYG could of been delayed possibly. I know u are often ahead of the curve, just general public causes trend to continue for little longer. When your "real" fund, will u use trailing stops etc or is it easier to clear the mind on positions when ready.
-Nomar
sorry meant SKF instead of SZK
Mark,
A question on VIX. Everyone is talking VIX to reach 30 to get panic selling and we might reach a bottom. I know last time it reached 30s was in Jan and March. Why can't VIX breakout 30 and make new highs..
nomar, I can only do limit orders for buys and sells.
I'd use trailing stops more on stocks in uptrends.
passionate, VIX could be 50 if things devolve. mid 30s is the area it peeked in Jan and Mar so that's why everyone is talking about. Frankly so many people are now looking for the pattern it would be surprising to see if it works.
nomar, one more item
I started UYG as close to 4% position hoping "that" was a bottom - when the trade started to not work, I reduced it to low 2%s, and yesterday morning on the Fannie/Freddie spike bought back some SKF as protection. Around 2%.
I don't really outline all my ETF trades - but they are about 50% of my transactions. It would dominate the blog if I outlined what I am changing in my ETFs.
Essentially I am hedged neutral in financials right now with the 2 ETFs. Goldman, Mastercard and Blackrock are the only reason I am "net long" right now.
I do believe the snapback will be severe, short covering, in this group but the question is from what level.
Post a Comment