On an unrelated note but staying within the sector, several of the Canadian Iron Ore producers are fighting to stay in buisness with iron ore below 125 tonne. Some have raised equity by issuing shares at prices below the 09 lows so it is a sign of desperation. Some have gone to India and China to secure financing as well.
The iron ore market is not pretty and the fear is it will get worse before it gets better.
I hated to sell this morning for a large loss, but after reading the Credit Suisse analyst commentary (Schwab website), I sold all my shares at $18.65 and was lucky to get that.
As I see it, there is more supply coming on with new projects from Rio Tinto, BHP and Vale. All three of these companies have lower costs of production than CLF. I read that iron ore may drop to around $90. CLF has a much higher cost of production and can't sell at those levels and stay in business. Chinese demand has not kicked in. Even copper companies like FCX are being hurt by lack of Chinese demand. Ditto for steel
This may take a couple of years to shake out. If you are young enough, you can wait it out. If not, you may have to sell for a loss and move on
Navellier's stock grader will have to lower his sales and return on equity rating from "D" to "F". All other catagories such as total stock grade and free cash flow are rated "F". Hard to find any other company in the S&P in worse shape, stock will plummet when they are replaced on the indexes.