Dow up 25 and most coal stocks mixed. NRP is down fractionally. Very low volume yesterday and early today. Still look for negative guidance when NRP reports. CLF also reports after the close today. Coal and iron ore miner. Very important to steel manufacturers.
- CLF's primary business is iron mining. They have some met coal, but that's not where they make their money.
- The main hit that CLF took was due to a couple one-time charges: $1 billion for some new mines that came online, but haven't performed as well as CLF had hoped. And another $1 billion related to the sale of various properties. (To quote the great Everett Dirksen, "A billion here, a billion there, and pretty soon you're talking about real money.")
- CLF's fortunes depend on the Asia-Pacific market buying lots of iron ore for steel -- a business which has not been as profitable in the past year.
- CLF is not an MLP, it's a C-corp. Consequently, they have more flexibility in deciding to cut the dividend than an MLP has in reducing its distribution.
So unless you have big pile of CLF, their bad news has only marginal relevance to NRP. (You *do* have a boatload of CLF, don't you Askew? That's why you've got your panties in a bunch over CLF's announcement...)