Use a well thought out plan based on sound research from factual data , followed by a thoroughly good execution. For me and unfortunately for many other LONGs here, CLF became an exception. I can still walk away once it reaches my breakeven price of $22. Till then I will be activist and practical and say whats happening to this fine old local Cleveland company. And if you don't like it its your problem. some here try to pump it up and others try to bash it.
I do agree that the present management of Kirsch is incompetent and must go if this company is going to be revived and prosper. IO prices are under $100 now and until they start to go up, CLF MUST cut overhead and other cost and CAPEX drastically to make it in this tough commodity market.
I had a phone call from CAs Rep after I sent them an email yesterday. The guy said they are aware of other big institutional investors holding Cliff shares and they are working with some of them. He will not elaborate much on that. He said CAS understands why we the shareholders are upset with CLF management losing over 80% stock's value. . So I think something is cooking here as they get ready for the meeting .
Some sort of stability seems to be returning to CLF. Not sure how long will it last. If IO price begin to move up, perhaps it can get in $20 range..They still need a lot of work to do to fix their problems. Too much expenses and NOT enough revenue...IMO
I am sorry if some people here don't like my opinion or my thinking on CLF. They are entitled to their own opinions and I respect that . I say things as I see. I have NOT seen another company here that has lost 85% of its value in this super bull market . Certainly CLF needs NEW FACES and new DIRECTION to make it in a tough commodity markets. I think only a few will disagree with that.
Vip, the same thing happened to me when I bought this stock. I lost my financial discipline and what was a trade turned into a long term holding. This company has huge management issues and it should be simple even for an unsavory character in Drapkin to take control of this company. He will do what should have been done years ago. He will sell off the international #$%$. CLF is no international miner they will get crushed by the big four. To think they won't is pure folly. Even if iron ore goes up a little this summer the long term trend is down and oversupplied. The only thing that is giving this company any sustainable cash flow is the US operations. This is worth well more than market cap. After Drapkin is done selling all the international #$%$ this company will make nearly four dollars a share in earnings provide a $3 dollar dividend and probably be a $30-35 stock. No growth but a huge dividend for the next 30 years is fine by me. This sounds more reasonable then sending Canadian ore to China. What a joke!
The reason CLF is the exception is because of the short attack, it is a classic case that started in the beginning as shorts target a company that pays a high dividend and heavily invested into by pension funds. They worked the PR in the media, spread unfounded rumors, manipulated the stock price through classic short strategies and CLF's management just ignored them. And there is the problem I have with management, they may know mining but they don't have a clue on how to run a public corporation. Maybe Casablanca does and I think their input is what is needed to turn this company around, but I stop on giving them total control. What the company needs is a blend of the two along with getting rid of Kirsch. Since we have not heard much from him and CLF's presentations don't include him, I think he is not involved with the company and is on his way out as no one seems to be standing behind him.
A change in management and selling off under-performing assets can really make a positive change in a stock price...look at SWC...they did something similar to CLF, they spent a lot of money on some foreign junk that never made them a dime when commodity prices were high, but the current management wouldn't swallow their pride and get rid of it when prices tanked, and the stock languished in the 10-12 dollar range...as soon as management changed, they dumped that asset and focused on their core US platinum business, the stock instantly broke out to the upside and is now near 18. CLF needs to do the same. Interestingly enough, one of Drapkin's candidates is from SWC during this period.
surf.. you will agree with me that Carrabba and Kirsch bought mines in Canada when IO prices were $ 175 and kept spending CAPEX and other money like water when they made $11 plus per share in 2011. We are paying price now for that excessive spending. Until the IO price rise significantly, CLF is going to be in bad shape with the present management. Kirsch and his people didn't see the huge downturn AND EXCESS SUPPLY OF IO coming on the market and did NOTHING .That's why I am arguing that we do need a change in the company that has lost 85% Mkt Cap and reporting a loss . In most companies this management will not survive. CAS can't be any worse than Kirsch's management...IMO
The short interest started when CLF bought Bloom Lake and thought it could compete with the big four for China's cash. What a misguided calculation. Terrible management decision. This is why the stock was shorted because of horrible management. CLF is full of bozo the clowns!
"I can still walk away once it reaches my breakeven price of $22. Till then I will be activist"
Activist? There's a distinct difference between constructive activism and senseless rants on a message board. According to Casablanca, your handler, Cliffs is fairly valued at $52.00. So, your $22.00 target is grossly inadequate. Just trying to put some sense into your old brain.
$22 is a target for me if I want to walk away. You can stay with Cliff till cows come home . None of your inordinate amount of posts make any sense as you play BOTH sides of the stock...mike!!every one knows this. You bash surf and then you bash oht and dow. . I am ignoring you now.