Its all relative and what you call "good shape"First - we should all know by now about creative accounting. Does anyone think that Severstal does their books any differently than the results we see at HRG. The difference of course is that Severstal wants their share price as high as possible and therefore does everything they can to entice shareholders to buy. Even buying back their own stock when they were showing losses. Moving forward, the steel business??? Big question mark, as the Chinese are dumping, and keeping the price down.
The current share price at Severstal although back to its year ago price, is still about 1/3 of what it was prior to that. Their debts, and U.S. operations???
I do not really care what happens to Severstal, as it is very closely aligned to Putin and that whole crew. But as per the following, even ironically Mordashov appears nervous about his own governments intentions. Part of living in that great Russian democracy, known for its fair play, transparency, business ethics and world ranking in same. LOL
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To counter the slump, parent OAO Severstal has cut capital expendituresfrom $3billion to $1 billion (another sign that Sparrows Point’smodernization will be deferred) and will pay no dividends. Reported netdebt remains relatively moderate at $4.25 billion.
Mordashov’s future strategy is hard to discern given the opaquenature of his company. Moscow-based journalist JohnHelmer positsthat Mordashov has moved assets to the U.S. out of fear that his Russianoperations may be oppressively taxed, nationalized, or otherwise takenout of his control in the future.
But there is little concrete evidence that Mordashov wishes to exilehimself from Russia, where he has enjoyed a long and reportedly cordialrelationship with Prime Minister Vladimir Putin. It is just as easy tobelieve that Mordashov’s overreach in America was an exercise ofthe very qualities that made him wealthy in the first place. Perhapshis stated desire to invest in the U.S., regardless of the present downturn,will bear dividends to the hard-hit communities now dependent on hisbusiness judgment."
So if doing well is reaching a profit after huge losses, and some of which is based on Gold not steel, but did not look up the ratio, then good for Severstal. Good shape however??? Dig a little deeper at the debt, steel operations and world competition in this sector. The stock markets are up everywhere, and in some cases has very little to do with what is really going on, but interpret it anyway you like, I see Severstal as a marginal steel operation and lumbering. But, Hey buy some Severstal shares if you like. LOL Maybe we should write to one of our government officials and offer Safe Haven for Mordashov when he needs it. Funny how things like that happen in Russia. Even funnier when they leave for U.S., Canada or UK. Wonder why?