(1) Improve cash position: sold 9 M - 10 M shares @ $29 to get ~ 275 M cash.
(2) reduce cost: by reducing div 75% that is not good for investors but is good for the company.
(3) reduce G&A expense
(4) reduce the cost of producing iron ore.
(5) idle or close the high cost mine.
This management team did a lot of things to ensure CLF will be successful in the future.
Hope the stock price will be back at least $40 before the end of 2013.
I believe JP Chase was right to claim CLF will be doubled by the year end.
Good points Kay. Although $40 sounds a little aggressive to me at this point, one can't deny the drubbing these shares have taken YTD, among the worst on the NYSE ... given some share dilution and still uncertain IO prices I'd be content for a return to $30 by year's end.
Unfortunately, this stock has never moved rationally or steadily. It might end up at $30 by year end but that's before it goes to $50, then back to $17, then up to $40, back down to $25, and ending at $30. Its a total joke and this stock is as manipulated as any I've seen. The Asian markets are sleeping when CLF is in session, but the stock will move down 3%, then up 2%, then back down 3% in a regular trading day. CLF should move in some kind of harmony with Iron Ore and that hasn't been the case at all.