FYI, this is actually quite significant pertaining to CLF's UP operations (and everyone else living in the UP) Ironically CLF triggered this in 2013 by using a law passed that allowed them (and apparently only them) to switch energy providers - so they did - to Integrys out of Chicago. That left everyone else using the Presque Isle (WEC) coal fired plant (approx. 10% as CLF was THE major customer at 90%) footing the bill Under an obscure cross rate rule, ALL of Wis & Upper MI customers regardless of supplier shared those costs.(but remem CLF switched to Illinois). WI sued removing their residents, leaving just the few in MI actually tied to the Presque Isle plant. A new recent federal ruling would make all those in the Presque Isle service area solely responsible REGARDLESS of their supplier (CLF now back in pool) and facing avg annual rate jumps of $600+ for individuals, $6,000+ for small to med businesses, and $$$$$ for CLF beginning this Dec. It would have made CLF's MI I/o unprofitable. Would be interesting to know what CLF agreed to as a rate. Remains to be seen how the loss of coal cargo will affect I/o shipping out of Presque Isle
I'll be just a step ahead of you at $5.85. IMO looks like ~28% discount to the $8.11 high close hit on both 8/4 & 8/5. Can always count on market to overshoot a target - in this case the dilution from the 44 million share offering. Now, let's hope it fares better than the last offering!
a bit concerning, but s/b better for the long run. Hopefully CLF will not do as bad as X has done after they announced their secondary at $27 last week. X 1st projected 17 million shares @ ~ $25, then a few days later said ~19 million shares @ $23. Apparently the market didn't like that based on todays s/p near $21 .
only shows 8.10 as today's low? Same with X not showing anything below $25 this morning which contradicts my buy well below $25. This Yahoo is getting very strange. Hopefully Verizon will get things straightened out soon - but my experience with them is not good.
Imag, seems like an odd ? from someone who's been here as long as you. Though IMO I think the tide has finally shifted when we hit $1.65/sh, there are a couple things needing clarity going forward: (1) Essar resolution, (2) the $300m in new shares, (3) new sales.
BF's AKS & X both beat on EPS, but not rev - considering where those #''s are, it's not too encouraging for future.
The biggest obstacle to CLF (IMO) is debt vs what's left of the size of the company to gen profit (i.e. go back to before China resource run and CLF expansion for reference) I have a concern for steel that Gov't protection measures only last initially, as there are always ways to circumvent over time. You either believe USA steel can grow or not, and that CLF can make inroads on EF's as they continually take market share from BF's.
IMO AKS was mixed. The sales were disappointing given the opportunities that should exist under the protectionist measures in place and coming down the line. CLF, IMO, needs to add additional customers and crack the EAF business to be secure. Going to be looking closely at X's breakdown of data for any hint of I/o production loss (clf gains?) or just lack of BF sales
care to expound? looks like all commodities have made good % gains this week after Brexit worries faded out, so it's not just X, though X has done better than others. Tariffs? Hard to believe earnings speculation, so rotation into the sector for 2nd half plays?
shorted on the Brexit? Whatever the reason, kinda liking the action, just wondering if it will hold into earnings
That's making the assumption they are two different people. I suspect a number of handles on this board belong to the same person(s)
Orcl, while I would love to see $30-50, can't see how that would happen as CLF has historically been a $2-4 stock. Is CLF in better or worse financial condition than before the big expansion? As to those who say they have the USIO market sewed up, one needs to look at the health of USA steel - are there more or fewer since around 2000 ? The BF demand for I/o will continue to dwindle, CLF has to get the EAF's to switch to improve tonnage sales. As Imj is fond of saying, the China boom cycle for commodities is done and will never again be repeated on this planet.
As an aside, while tariffs and duties will work short term on steel, has anyone considered what happens longer term to USA manufacturing? We will price ourselves out of everything but captive markets. Far better to win on cost and quality than artificial barriers.
Nick, look to history of how Std Oil removed the competition and became one of the biggest oligopolies of its time. When competition becomes limited, the few remaining control supply and price.