I am long a large position from much higher and it was an 80K negative week. Got mislead by a large call discrepancy into the earnings. People were buying calls all the way to $50. Did not hedge. Big mistake.
I have to agree with bestrends1012 however. The conference call sounded horrible. It took the stock from $41 to $36.5. The bottom line is they are idling facilities till the Iron Ore goes higher. They calculated $113 per ton average for Q3. If it stays were it is now (likely), the results will not be much better.
On the other hand, Novemeber and December are traditionally best months for Iron Ore. So a substantial bounce can be expected.
All that said I would say there's a reasonable chance we will retest the lows and then test high 20s. Regardless how painful it is to admit. They guided 19 mln tons from 23 mln. It was 17 mln at the lows (low teens ($12) I believe in 2009).
Do the math for yourself. Read the earnings transcript. Do your own thinking.