Rio's operational update today has pulled the cover off of Pandora's box for shorts. The utter incompetence CLF's management has shown in shareholder/stock price management is stunning. Nevertheless Rio's report of record I/O production this quarter has caught Shorts by surprise and now the race is fully engaged.
Exactly Surf. Shorts were counting on the Debt Ceiling Fiasco to tank the market and continued silence from CLF's management. What Rio's IR department did today is what many have been looking for from CLF and that is a simple operational update. When there is a vacuum of information, shorts will definitely fill it. One of the reasons that so many shorts are in this stock is the silence from management allow them to paint a story that is untrue and depresses the share price and causes significantly volatility that really isn't necessary.
I wish CLF management is as responsible to its shareholders as RIO's management is. All we ask for is an update on sales. RIO delivered a sales of 4.4% more than last year which amounts to 68 or 69 million tons. Since CLF sells less ore a spike could mean a larger percentage. Especially with the work being done at Bloom Lake. Were mine expansion leads to increase ore.