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Cliffs Natural Resources Inc. Message Board

  • imaginejml Sep 24, 2013 9:09 AM Flag

    If anyone is interested, Seeking Alpha has another report out this morning about CLF compared to VALE, RIO, etc.

    They basically think CLF debt and likely lower IO pricing will hurt CLF going forward. What's new?

    It's like they think Q1 and Q2 results were a fluke and not likely to continue. The only thing I firmly agree with is the debt issue for CLF.

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    • Because of this article and the lower price today, I have just bought some more. Yesterday, I also bought a few more.

    • This is what that Report said to me.......It said that prior qtr,,,,iron ore was at $120 and CLF made 82 cts a share,,,,inspite of the fact they wrote off 68 million.....NOW this qtr Iron Ore is at $140.....which means
      CLF will make $1 per share plus 68 Million......that's a lot of money....Price per share will see $40 soon...
      They tried to write a negative on CLF,,,,but if you read and analyize....they basically told me CLF will double.soon

    • What is the problem with their debt? Their profits are good after they pay their interest expense, plus they are paying down the principle on their debt each quarter. For every $100 million they pay down, their interest expense decreases by $2.5 million for the next quarter which will result in a 2% increase in profits.

      As long as a company can pay its bills and make a solid profit, there is nothing wrong with debt, it is just a tool in doing business.

    • Over the last 5 years they have suffered similar ups and downs as VALE and RIO. But, the overall trend has been lower than those two. It is all is a function of ppt at this point. If that does not hold, CLF will have a tough time and the credit suise report will come to pass.

      What immediate effect would a war have on the ppt? Up?

      Sentiment: Hold

      • 1 Reply to redhaw_2000
      • Outside of relatively big wars, there isn't that much increase in steel use or procurement from conflicts these days. I would be surprised if you could even see it in the data for the Iraq War, where uparmored humvees used appreciable amounts of steel. Steel is used more for construction and transportation uses, and there might actually be some material changes that would result from the EU getting back to a more normal rate of car buying (which would add a few million more cars sold per year), or the Chinese infrastructure investment program announced a few months ago actually coming to fruition.

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