probably good because I sold some today due to such a drop without news...hate this...we are always last to know!! That said, they raised 500 million last month, plus 140 million from the other sale...If this mine was valued at 1.5 billion and is sold now for 1 billion, at least they'll get 300 million...plenty of cash to keep div investors on board...good luck all...any thoughts would be appreciated...
Sentiment: Strong Buy
I think you are mistaken, This is reduction on the balance sheet of assets. Goodwill will be reduced and no effect on cash flow. It reduces the net worth of the company but shouldn't affect the current income statement. It might actually clear out a dead asset that was bleeding.
It's a non cash charge, they will use it against earning to lower their tax liability and increase cashflow. This with the au. mine sale should add 500million to the balence sheet. BOth China and India are expanding, plus the number of mining closures in India and mines that were delayed over the last 2 years, supply of Iron Ore will be tight for the next 2-3 years. I tarket CLF reaching $60 by 2014 and $mid 70-low $80 in 2015
Sentiment: Strong Buy
take a peek at the January 8k's on SEC page. Also mentioned in another Jan 8K, paying off the senior notes is a good thing longterm, but will put a real crunch on Q1 numbers (apparently this happened in January). Combined with potential debt ceiling brinksmanship, this could provide an indication of the direction of CLF stockprice in the coming months. It could be a little rough unless the overall market gets some traction. Just my opinion.
The QE needs to end and I think what they did yesterday was calculated and intentional. Consumers are now facing higher taxes, inflation will only lead to a recession, which still might come anyway. Ben's pushing on a string and if he can"t figure that out , maybe he needs to go back to Harvard.
BRUTAL, that combined w/ the RIO CEO saying I/O prices will come down are both hitting us.
They lost their damn shirt on the deal. Paid high, ran up massive input costs ($100M++), and are now selling at a market low ($300M).
The only way we regain $50's is if I/O can hit and hold above $150 for a month or so.
Come on China, Buy, buy, buy.