Mechel (MTL) has now pulled back to its 50 day moving average, so I am going to begin to rebuild this position; certainly in a greater commodity pullback we could see a much larger pullback but I cannot predict the future and this is a good time to begin rebuilding as the stock has fallen back from a high of $58 (split adjusted $174) yesterday to $49s (split adjusted $147) today, which is a 15% haircut.

I’ve been ringing the register on this name on the way up. So I’m beginning to rebuild this today and taking Mechel back up to a 2.9% stake, with purchases in the $49s. I don’t expect any quick turnaround as the commodity area is due for a sizeable pullback and in fact I’d love to purchase more in the low $40s, if we get there. This is the first of many names I have on a very large buying list, that has pulled back to an initial support area. So as my price targets hit, I will begin buying. In time I’d like to get Mechel back to a top 5 position as it has been in the past, but I’d like lower prices first.

[Apr 9: Mechel Continues to Acquire Most of Eastern Europe]

Long Mechel in fund and personal account

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