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Cliffs Natural Resources Inc. Message Board

  • southbuckeye southbuckeye Mar 8, 2013 3:40 PM Flag

    In comparison to others, CLF is priced too low

    .41 vs. 1.86 These are the projected yearly earnings predictions for two mining companies. Their stock pices are only about three dollars apart. Why would anyone buy the stock of a miner projected to earn .41 this year when another miner is projected to earn 1.86? Especially if the stock price difference between them is three dollars. Peabody is the co. projected to earn .41 this year. Cliffs is the co. projected to earn 1.86 this year. CLF's stock sells for a mere three dollars more than Peabody's. Either Peabody is priced too high, or Cliffs is priced too low. I believe it's the latter.

    Sentiment: Buy

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    • You're comparing cats with dogs. Peabody (BTU) is not even in the same sector as CLF (Metals/Mining) You'll need to compare P/E against RIO, VALE, BHP if you want a closer comparison. CLF trades 6-8 times earnings and stays in that range for the most part. Until they surprise the earnings to the upside, announce higher guidance, or analysts start raising the targets/ recommendations, we are range bound. (IMO) If China keeps announcing slow downs (imports / construction / etc) this will still drop, Next POP will be earnings @ the end of April.

 
CLF
4.3001-0.3499(-7.52%)12:40 PMEDT