"Don’t bargain hunt for iron-ore mining companies yet [YTD BHP -11%, RIO -18%, VALE -19%, FSUMF -19%, CLF -46%]. Things were bad in 2012, have turned worse and will become worser.. China is increasing production, increasing steel recycling, and cutting imports; and did you hear about China trying to cool its hot property and construction markets? A lot of Australian production is coming on stream. The result will be an oversupply the industry has never seen and the iron ore will crash below $100 [current $134, YTD high $160]; there is no turn up in sight until 2015."
Barons wrote a bullish article on clf last year if you listened you would have a 1/3 of your money left. If you don't believe me google barrons clf article. Theres no good info in articles they just want you to pay the subscription fee like a sucker.
Barron's is wrong like -- most of the time and is a super contrarian indicator -- thanks - I will buy more Cliffs on Monday as this stock is poised to run - I am telling you as spring evolves and turns to summer this stock is going to be much higher --- world wide growth will accelerate NOW and infrastructure investment is going to be huge. Also bought freeport on Friday. Boolean
sounds negative except that I don't think china's demand for high grade iron ore will decrease all that much.their government has been trying to suppress demand for three years now with not much success. their iron ore also is lower grade and more expensive to extract, and the big three miners will curtail projects and production to prevent a creash in prices, although everyone admits prices are generally coming down to low of around 100, but I think that will be the low mark this year for iron ore. also the US will consume more iron ore with the energy, constuction, and auto industrires continuing to improve. I believe we are at the nadir of clf prices. it seems that way since no one wants to recommend it.