So since this collapsed from the mid $10's, what's happened.
Really nothing, she bounced BUT could not regain the $10 line, and more importantly, the mid $10's where she broke down from. And one she failed: flush, right back down. Now w/in change of $8's.
The pattern has been pop on news, always failing at the 50dma, then selling off immediately.
This is all old news except China may cut rate again by another 0..25 in a near future. That may help CLF and IO price a little bit
LG needeo get rid of APIO before IO price drops much and its NOT profitable and get ou t of BL and take closing cost and forget the whole thing. Taking $120 mil yearly for the closing cost over 5 years time is lot better than $300 mil loss yearly on BL mine. If he gets all this done by the end of this year, CLF stock will move up on highly profitable US operations and NEVER look back to SB IO price.
China cut the one-year deposit rate by 0.25 percentage point to 2.75 percent, while the one-year lending rate was reduced by 0.4 percentage points to 5.6 percent, effective from Nov. 22, the People’s Bank of China said Nov. 21.
It would take three to six months before the effect of the rate cut to feed through the economy, Sanford’s Gait said.
“At these prices, we still have a very decent business,” BHP Chief Executive Officer Andrew Mackenzie said Nov. 20, adding that the time for massive expansions of iron ore are over. “We’ve been fairly clear that prices at about these levels were what we were expecting for the longer term.”
The market has hit bottom and prices may rebound, Standard Chartered Plc said in a Nov. 3 report. Prices will rise again over time, Rio Tinto Chief Executive Officer Sam Walsh told Sky News Television on Nov. 13. In the long term, the market won’t be oversupplied all the time, Vale said Nov. 7.
At these prices, buying is low risk. Just the bond buyback will see CLF adding cash without increasing total long term debt or selling a single asset.
Year end selling . Look at all the funds that have it . Many will sell for a tax loss against alot of there winners. but rebuy and theses low levels and create a new book value
After impairement charge, the book value for East Canada is only 1.6 bil. If they can sell it for 1 bil and use it to buy back the bonds at 65% discount which ends up to retire 1.55 bil debt (1 bil/ 0.6=1.55 bil). The current bond tender use $600 mil to retire another 223 mil debt (600 mil /0.65 =923 mil minus 600 mil cost). So, 1.55 bil + 0.223 bil =1.773 bil debt will be gone and only left about 1.25 bil debt for CLF.
It also benefits the buyer too. Per BHP CEO, it needs at least 3 bil to build a new mine with 10 mil tons and a few years of construction. Now, the buyer can only spend 2.2 bil (1 bil for phase I + 1.2 bil for phase II) with a capacity of 13-14 mil tons/year and very high quality IO and low cost. Let's see whether there are buyers with this strategic views.
yes, I like to buy more too.
If one has 10k shares, it will give $0.6/share x 10k gives $6000 dividend income per year while waiting for the price to double up in 1-2 years time. It is much safer to park my money in an already bubbled stock.