Why can't the market as a whole see that MS actually increased their target on IO? It should be clear to the market that when the price of IO increases by $1, that increases CLF's quarterly profit by $6 million. So when you increase the target price of IO, you really are saying that CLF's earnings will be going up.
One dollar in I/O pricing is worth more than six million. Didn't the company sell over 8 million tons last quarter? Then one dollar in I/O is worth 8 million. Unless you are aware of Cliff's iron ore hedging costs structure.
They didn't cover on the good earnings, improved sector outlook, increased IO prices, China data, and the entire past two run ups in SP etc.
They are winning, they are in control of the trade and they know it. These positions are the "big money"---WS at their finest and they sure do not worry. On their side of the game they have every sophisticated borderline legal and illegal advantage, including the SEC in their back pocket. When they do cover I am sure it will be quietly--some dark pool share borrowing unreported between institutional trade BS. We simple guys will know when the SP rises and keeps some valuation beyond a half day.