Started small position at $38. will buy same dollar amount used to buy initial position of CLF every time if falls $4/5 bucks or every quarter if the price stays around 38. In 2009 it fell to teens, but im expecting no more than mid twenties. the fundamentals are too good for this stock, only the charts look bad. the dividend is good as its less than 20% of their earnings @ 6.5% and they doubled the dividend 2 quarters ago so the company felt going forward they will have enough earnings to pay it out. P/e less than 4, debt/equity .63 =no brainer for long term investor. only problem is beta = 2.38 so the price is going to swing but that just equals more buying opportunities for me. the company has roots going back to the 19th century, they know how to operate during tough times. this is a golden buying opprtunity if bought slowly over time in small pieces.
Ive been looking at the CLF board and everyone is pointing to what the media is reporting about how low commodity prices are and china this and china that and I found a blog that made basic sense to me on investing in CLF now. Its a simple investing strategy that a lot of people forget when they get wrapped up in the media. A part of the essay begins with "Hop off the emotional roller coaster. To cultivate a good temperament -- one that focuses on the long term, not the short term, and ignores the crowd in favor of a well-thought-out strategy -- channel Steve McQueen (or whomever is the cool dude/dame du jour). Build resistance to the emotional triggers that lead to bad investment decisions. Here are a few exercises we regularly do to keep our cool:
1.Memorize this affirmation: "I am an investor; I am not a speculator." All together now: "I am an investor; I am not a speculator." As investors, we:
•Buy stock in solid businesses. We expect to be rewarded over time through share price appreciation, dividends, or share repurchases.
•Don't time the market. And we certainly don't speculate when we buy stocks. Speculation is what Wall Street traders do.
•Focus on the value of the businesses we invest in. We try not to fixate on the day-to-day movements in stock prices.
•Buy to hold. We buy stocks with the intention of holding them for long haul. (That said, we are willing to sell for reasons we outline in Step 10.)
We recognize that believing your affirmation is sometimes easier than living it. To avoid behaving like a speculator …
2.Tune out the noise: Put down the newspaper, turn off CNBC, and stop clicking that. And that. And, yes, that too. None of it is doing you any good.
Fixating on the market's minute-to-minute news won't help you make your next brilliant financial move. At best, all the hours, days, and weeks spent soaking in sensational stories will yield a few timely bon mots to toss off at the next office happy hour. Mostly, though, it's all noise, and it's costing you a serious amount of sound sleep -- and maybe even some actual money." So anyway, i'm going to continue to buy CLF in small blocks over time and going to see what happens over a long time. Like I said, people are gonna need iron regardless of what china or anybody says or does.
The only way CLF moves up is if China heats up or if the Chinese introduce a "stimulus plan". None of which I think is gonna happen anytime soon. I see more downside as ppl get frustrated with the stock's lack of upside. Maybe it will start climbing in the spring of 2012.
so i hear, so we all hear, lol. this is something investors have to heed. im still buying in small amounts. if it goes down, good im buying more, i have a plan here. currently, iron prices are very low and clf is still turning a great profit and is only paying out less than 20% of its revenues in dividends so i really dont need clf to do anything just pay that div. could it go down more surrre, but at a P/E of 3#$%$ one of the cheapest stocks in the sector.