Quick Win by the Algorithm: MTL Benefits from Growth

Quick Win by the Algorithm

Mechel Sp ADR (MTL)

On August 26, 2016, the I Know First algorithm had published a bullish forecast for the time period of 7 days. In addition, on August 28, 2016, one was published for the 7 day period, as shown below. In accordance with the algorithm’s prediction, Mechel has risen 18.89% over the past 7 days.

Quick Win by the Algorithm: MTL Benefits from Growth

 

Mechel Sp ADR (MTL) is one of the leading mining and metals companies in the world based in Moscow Russia. Mechel POA was founded in 2003. Today they have in Russia up to 11 production facilities in which they produce: coal, iron ore, steel, rolled products, ferroalloys, heat and electric power. Which they sell on the global market.  Mechel is the first coal mining and metals company in the Russian and Eastern Europe which is being traded on the New York stock exchange since 2010.

Quick Win by the Algorithm

In the past three month MTL stock has been proving, with a 3 month return of +21%, and +3.4% over the last six months.

 

On august 30 there was an increase by the stock from +1.91 to +2.1 (9.94%), The reason is due Mechel Reporting their 1H financial results were published. CEO Oleg Korzhov stated that: “Mechel’s consolidated revenue over the first half of this year total RUB130 billion, with consolidated EBITDA at nearly RUB26 billion”. He continued explaining that in may prices reached a peak but over the summer the price was adjusted and went down, yet overall higher than the year’s beginning. As well the coking coal market also demonstrated positive dynamics. The contract for coking coal for the second quarter will rise from 81$ a tonne to 84$ and this is a big first improvement. This is the first growth contract improved in the past few years.