Mechel’s shares have tumbled following a report
The end of the week showed that not all companies were able to recover, and the new “sanctions” against the Steelworkers, and specific individuals lead to a significant revaluation of their assets, albeit short-lived.
This year will show the real efficiency of management in crisis conditions the global industry metallurgists, and not all companies will be able to take advantage of new opportunities.
Revealing was the report of “Mechel” which has led to a significant drawdown of quotations of securities. The company’s net profit increased by 62% and revenue by 8%, but these values were projected previously, but the old debts worry more. The relatively high level of debt has long been a “stumbling block” for the holders of securities, according to the report, long-term liabilities increased significantly. While capital costs also promise to grow in the current year.
Expected dividend yield looks good, however, the creditor banks have the right not to approve the payment. In our opinion, the drop was disproportionately greater than would be expected, but to buy securities is not, you need to wait a few days until the situation is clarified.
IR Global Capital