Hey..,the new shares will dillute, what maybe some 6% of the outstanding float, but at the same time that'll mean LESS debt service and will drop right to the bottom line. So ok..worse case, CLF may not go to $110 next time, but maybe only to $75??..."HELLO!!!"
This is true, however the weak hands and divy holders need to be shaken out before that can possibly begin to occur. I am looking for a entry point in this stock, but I wouldn't buy after yesterdays carnage for at least a couple days. As long as coal prices continue to increase or at least stay where they are at CLF will start reporting better quarters from Q2 onward. The next 3 months might not be so great stock pricewise as we are in the heart of the slow season for sales anyway. June might be a good month to get in, perhaps sooner depending on market conditions.
Sounds like a big deal to me. CEO and CFO have shown they are incompetent. They apparently cannot add and subtract simple numbers or forecast even a few months ahead. They have killed the stock at a time when iron ore prices are good and we won't see any benefit from it. Many are forecasting oversupply of ore in the second half of 2013 so no chance to recover this year at all.