Market makes another new high and CLF another new low. If this market corrects will be heavy selling of CLF. Company that is still losing money will be first to be unloaded. Can not understand why folks have been holding this company. Would love to hear the rationale for holding.
About the only rationale(s) I could give are 1) selling way below book value, so may become a value play, simply for the 'tangibles'...or possibly a takover play...but don't pin my hopes on such things - yet, that's one rationale...2) I liked the volume today...maybe shaking out the last of the weak holders, and can't balme them...the pain has not been fun....( but it's approaching it's 09' recession lows....so, I'd rather buy some here, than back at $100, when everyone loved it...i.e. I generally make decent returns buying what has the most embedded PAIN...This one may qualify?)
All materials stocks are down, I would be concerned if it was company specific. Take away the non cash charge and this company is making money. With the filed NOL, they are going to build cash. This stock will turn around with the rest of the materials stocks.
I agree it will in some form turn around but it will probably be at a much lower price. I did own CLF as an investment earlier also. When things started to look negative for coal and other commodities I sold. I hang around the board as I still follow the company and am looking to purchase again. Granted maybe the big money will manufacture some positive news for a bounce yet it would appear that it will result in a lower high within a downward trend.