Mechel (MTL) Stock Jumps 15% On VTB Comments

Shares of Russia’s largest coking coal producer Mechel OAO (MTL) are trading higher by nearly 15% to $1.56 in early trading after a Bloomberg report cited VTB Group’s CEO suggesting that the coal producer may still avoid bankruptcy.

“The door is open and if there’s a possibility to resolve it, we will,” the exec was quoted as saying Wednesday in an interview in London. Approximately 684K shares have already changed hands, compared to the stock’s average daily volume of 1.04 million shares.

During today’s trading session, MTL opened sharply higher and has kept printing higher highs. It has currently settled into an intraday range of $1.56 to $1.77 with its 52-week range being $0.42 to $2.46.

Fundamentally, MTL shows the following financial data:

$72.06 million in cash in most recent quarter
$13.83 billion t-12 total assets
$811.82 million total equity
$6.89 billion t-12 revenue
($50.03) billion annual net income
($7.4) billion free cash flow

On valuation measures, Mechel OAO ADS shares have a T-12 price/sales ratio of 0.08. EPS is ($4.57). The name has a market cap of $671.69 million and a median Wall Street price target of $1.02 with a high target of $2.01. Currently there are no analysts that rate MTL a ‘Buy’, 3 rate it a ‘Hold’. 4 analysts rates it a ‘Sell’.

In terms of share statistics, Mechel has a total of 416.27 million shares outstanding. The stock’s number of shares sold short currently stand at 9.79 million.

The chart below shows where the equity has traded over the last 52 weeks.

Mechel OAO is engaged in mining and steel businesses in the Russian Federation, other CIS countries, Europe, Asia, the Middle East, and internationally. The company was founded in 2003 and is based in Moscow, Russia.

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