Thes guys HAVE BEEN THE WORST AT TIMING MTL upgrades and downgrades. Lets review thir last 5calls...
Feb 2, 2008, upgrade to ouperform when the stock was @ $32.32, then the stock went to $57, and then to under $3 before they decidedto downgrade. My grade D-, only because it did go up at first, but then it lost over 90% of its value!!! Talk about rip van winkle!
Dec 1, 2008, downgrade to neutral when stock was @ $4.25. Well, I suppose better late than never! My grade F, this was the worst time to downgrade, wow, really bad. WOW, Im speachless...
April 1, 2009 downgrade to underperform when stock was @ $4.50. OK, so it went up a little, it basically was neutral, so they were getting on track here, of course right after this 2nd downgrade (again way to late) the stock basically double before their next 'upgrade'. My grade is an F, I would give them a worse grade but there is no such thing.
July 2nd, upgraded to Neutral when the stock was @ $8.50. Once again these bozos are late to the party, and only to neutral, well, the stock moved a few hundred percent up from here basically, to its 52 week high of over $22 recently. So once again, these fools totally missed the boat, what are these guys paid I could do better maybe they should hire me.
Dec 2nd (today) 2009, downgrade to underperform from neutral. Well, I can't grade this one yet, but I'm not sure I would even consider it if I wasn't already in this stock. Lets face it these guys have been a$$ backwards at every step they have made, and this is just a buying opportunity for me, I will be adding to my position soon in fact if it pulls back at all.
So to summarize, they downgraded to underperform when the stock was @ $4.50, and the stock is up about 400% since then, wow, I think I will do my own DD instead of trusting a yahoo the appears to have an agenda and a trigger happy downgrade finger.
Good luck to the longs!
Sadly they might have accomplished their goal short term as technicals look a little ugly compared to other steels recent moves. On a more positive note MTL needs to play catchup if the market doesnt sell off.
Good review. Totally agree. I have held MTL when it was in the 50's and in the 3's. Stock is volitile so I now use calendar calls and covered calls. Now hold 5k shares between options and stock. With acquisitions company now has more to offer marketplace then one year ago. I believe can get into the 30's by mid 2010. Good luck.
They are really stupid and has no creditablity. They just keep guessing and have no idea about the market. They should be a shame of themselves. I think 3 yrs old is much better than Credit Swiss. Really dumb.Mtl is about to break out and will go much higher from here.
Just being stupid guys.
Putting a limit order in for 500 shares of MTL, since its thinly traded I'm not telling you my price but it is between 19 - 19.50.
Good luck to you as well, options are a great way to trade if you have enought stock to write them!