Mechel (MTL) Stock Still in World of Hurt

Mechel (MTL) has hit my "target" of $40 to add more, but it is close enough now to the 200 day moving average ($38) that I'd prefer to wait and see if we can get that price. It has been an interesting exercise of late in the metals space - first goes Vale (RIO) now goes Mechel (MTL). Interestingly the market is assuming both are on the hunt for acquisitions. We are in the upper $39s now and this remains one of my favorites ideas - so I'd love to build it up at $38. It is amazing to see these forward multiples compress. Some news this AM ---> I'd love to see them acquire a US metallurgical coal company (grin)

• Russian mining giant Mechel (MTL) plans to use the money raised from its share sale to acquire a large private mining firm abroad, a financial market source familiar with the situation said on Friday.
• The source said the acquired foreign asset will first be integrated into Mechel and will then "very likely" be included in the Mechel Mining subsidiary that the firm is creating.
• On Wednesday, Mechel set the price range for its sale of preferred shares at $50.50 to $60.50 per share. It has already received permission from Russia's markets watchdog to place 35 percent of its preferred shares. Mechel plans to sell 55 million new preferred shares both in Russia and in Frankfurt in the form of global depository receipts (GDRs), totalling 11.67 percent of its share capital after the sale.