The Portnoys have became billionaires perfecting this business plan.. They consume all the cash flow at TA, shareholders don't even get crumbs at TA. And the bulk of cash flows at there other egregiously conflicted companies. Shareholders just watch and bark at the moon... Quite remarkable..... that they have fleeced the shareholders of public companies for decades. And they will fight. See Commonwealth REIT.I hope in the end, they get what they deserve, What comes around goes around. In this life, or the next.. Does anyone doubt TA could have a market cap in the billions, if the BOD was running it in the best interests of the OWNERS, versus Barry P.
Correct. Put options trade at slight premiums to calls, more so the farther you go out. It has narrowed, but still skewed to the negative. Still good value for writers. Premiums remain high across the entire spectrum using a Black-Scholes model.
Nucor Corp's planned joint venture with JFE Steel Corp. in Mexico should permanently dispel the old myth that mini-mills cannot produce top-tier automotive steel, according to Nucor's top executive. For the last several years, I kept hearing about how people cannot accept the fact that Nucor's and mini-mill technology can produce top-quality steel to go into automotive,Nucor chairman, president and chief executive officer John Ferriola said in an interview on the sidelines of the Steel Success Strategies XXXI conference in New York. This (joint venture) should finally put that argument to rest. The $270-million joint venture, Nucor-JFE Steel Mexico, will feature a continuous galvanizing line in Mexico with an annual capacity of 400,000 tons. Nucor and JFE have said they will provide equal amounts of steel substrate for the venture, which is slated for start-up in the second half of 2019, Nucor already ships sheet to Mexico from its mills in Berkeley, S.C., and Decatur, Ala., according to Ferriola, although he didn't have an immediate estimate of the company's total sheet shipments South of the border. In any case, the joint venture with Tokyo-based JFE Steel, a producer of premier automotive steel grades, will boost Charlotte, N.C.-based Nuco's sheet shipments to Mexico considerably, he said. Nucor also has a presence in the Mexican sheet arena via its steel processing venture with Mitsui & Co. (USA) Inc. NuMit LLC, also known as Steel Technologies LLC, Ferriola noted. Louisville, Ky.-based Steel Technologies maintains several processing locations in Mexico and has expanded its flat-rolled operations to Celaya, BajÃo and Monterrey over the past five years, according to its website. Ferriola pointed to the extremely thorough analysis of Nucor's steelmaking capabilities performed by JFE before opting into the partnership as further vindication of the soundness and technical basis of the venture, which he said is an example of Nucor moving up the steel value chain.
Voestalpine AG has signed a four-year deal to supply hot-briquetted iron (HBI) from its Texas plant to Big River Steel LLC, the Austrian company said June 13. New York-based investment bank Jefferies LLC noted last week that Voestalpine had completed offtake agreements for 1.2 million tonnes per year of its future HBI production from its 2-million-tonne-per-year Corpus Christi plant. The new order not only underscores the growing market position of the Voestalpine Group inside the (North American Free Trade Agreement) zone, it also secures full capacity utilization of the direct-reduction plant, even before it is put into operation, Voestalpine chairman and chief executive officer Wolfgang Eder said. Big River Steel is building an ultra-modern steel mill in Osceola, Ark., which will produce sophisticated flat-rolled products and will take annual deliveries of up to 240,000 tonnes of HBI from Voestalpine from 2017 onward. The new mill is located on the Mississippi River, enabling efficient and cost-effective delivery that requires no reloading en route, as Voestalpine's HBI plant is located on the Gulf Coast.These seamless logistics mean continuous deliveries of the high-quality (raw) material, (and will ensure) that we can meet our customers exacting demands over the long term, Big River Steel chief executive officer David Stickler said. Voestalpine completed seaport received its first shipment of iron ore pellets from Brazil, unloaded at the end of April.
U.S. Steel Corp. has not made a decision to pursue any potential direct-reduced (DR)-grade pellet opportunities, although it could make the product for mini-mills if the opportunity to do so arose, company executives said. It is a market situation. If the market is there, we should be prepared then to participate if we so desire, president and chief executive officer Mario Longhi said on the sidelines of the Steel Success Strategies XXXI conference in New York. U.S. Steel "no question about it" would take the plunge into the DR-grade pellet arena if the time were right, he said, but noted that no decision has been made to do so. Pittsburgh-based U.S. Steel has undertaken studies and engineering work that determined its iron ore bodies are capable of making DR-grade pellets, general manager of investor relations Dan Lesnak said. However, it would be incorrect to say that the company is pushing hard into the DR-pellet market, he added. Any such move would also require additional investment in U.S. Steel's facilities, Lesnak said. The steelmaker has also said it would consider selling blast furnace pellets to other parties if the chance arose..
Iron ore miner Cliffs Natural Resources Inc. (NYSE: CLF) announced Thursday that it will reopen its United Taconite mine north of Duluth, Minnesota, in August, two months ahead of its previously announced October reopening. The company’s decision was attributed to a new contract with the Canadian division of United States Steel Corp. (NYSE: X) to supply iron ore pellets to the steelmaker for the second half of 2016.
The new iron-ore pellet tonnage ordered by US Steel Canada brings Cliffs' sales volume expectations for the year to a higher level than expected in the company's previous forecast. Cliffs revised upwards its 2016 sales volume guidance to 18-million long tons from its previous guidance of 17.5-million long tons. The company added that the 2016 production volume had been increased by 500 000 long tons to 16.5-million long tons.
Cliffs inked a 6 month supply deal with USSCanada that covers q3 and q4 2016. Volumes came in higher than CLF had anticipated, thus the early start up for United Taconite....per LG.
You are confusing Stelco with MT. For now US Steel Canada is still spot business....they have increased there order with book with Cliffs for 2016, but there is no long term(10 year) agreement in place with Stelco.
Another tailwind for Cliffs: Its U.S. iron ore operations face few competitors in the Great Lakes region because U.S. Steel, which also mines ore and makes pellets, has historically supplied only its own operations, Michael Gambardella, an analyst at New York-based JPMorgan Securities LLC, wrote in a recent research note. Hibbing, Minn.-based Essar Steel Minnesota LLC, a potential competitor , needs $800 million to finish construction of its long overdue taconite plant, he wrote. The only other way for someone to challenge (Cliffs') business would be to ship iron ore though the St. Lawrence Seaway. However, this would be both uneconomic and inefficient, Gambardella wrote. That's because it costs about $15 per tonne to ship material through the narrow and shallow St. Lawrence into the Hamilton area and as much as $30 per tonne to ship to ArcelorMittal USA's operations in Indiana Harbor.The location of Cliff's iron ore mines around the Great Lakes is a major competitive advantage, and (Cliffs) remains the best and cheapest source of iron ore pellets for all the integrated steel mills, except U.S. Steel, Gambardella wrote.
You need to pay more attention to Nucor. BF still holds onto the auto sheet market, and I agree , batch size and superior quality are the reasons. But CEO of Nucor has made auto share a top priority at the company, and when they plan on taking market share, they always do. There investment in DRI certainly will play a role as they seek to perfect auto sheet and bridge the gap . As far as market share in the US, the EAFs will be at 70% within 5 years. BF steel is in a long and secular decline that began in the 70s. There has not been a new BF commissioned in the US in decades. Lunches get eaten . Check the volumes . And it ain't imports that have been the driver, imported steel had been pretty steady until the recent dumping. It is the shift to EAF..,hello Nucor! Look it up!
Don't confuse biggest with strongest. MT struggles mightily to make money, has lost 10s of billions over the the last decade, is highly leveraged, and has been closing plants state side for years, be it Bethleham steel or LTV, etc. The aging IHE and IHW have been rumored to be candidates for closure for years. Nucor and the EAFs are eating MTs lunch in the states, auto sheet aside. They build state of the art steel plants , take market share, while MT shuts down aging BFs and sells/ shutters and reorganizes finished mills and obsolete facilities on a regular basis.
Your confusing buying puts with selling puts! If ronderick bought the 2017 puts, he would be hedging his stock holdings against a drop in price below 2. But he did not. He sold the puts! So he wants the stock to increase in price, and pocket the proceeds from the put sale, when they expire worthless. I put a similar trade on. It is a bull trade, not a hedge! P
The intent of share buybacks is not to increase share price in the short term, but to increase your percentage of ownership in the company, by reducing share count. Theoretically, this creates value for long term shareholders if the reduction in share count is accretive to EPS, and other metrics used to value stocks. Cash rich companies have that luxury, though like you said, studies have shown the results are debatable. A lot of companies simply waste the money buying overpriced stock, vs investing in the business, or paying higher dividends. No matter, Cliffs is not in any position to buy shares. They have a 280m debenture due in 6 qrts. They will use a combination 1.5 lien bonds/ stock/ cash to address the 2018 bonds. IMO, they will do a capital raise( stock sale) when they see the opportunity to do so. Probably sooner than most think because they will need capital for capex and there HBI initiatives. LG is eager to move forward and a company must invest in its business, to secure its future. See Nucor and Amazon, the 2 best examples of world class businesses that invest massive amounts of there cash flow, in there best of breed businesses .
You must be a total fool to keep throwing Sunedison at Cliffs. SUNE was a horrific house of cards, with shady/corrupt accounting, and crazy financial engineering.. Even a forensic accountant would be challenged to see thru that maze of off balance sheet transactions, convoluted deals, and hidden debt bombs. CLF, while certainly levered, is very straightforward in it's capital structure. No bank debt, 3 tiers of secured debt, and senior bonds. All publicly traded, all having very mild covenants. With HRC prices up 75% off the lows, MT contracted, and Algoma back in the fold, your BK scenario is looking like a pipe dream. As the stock goes higher, they will use this valuable currency to there advantage, as they pay down debt and raise capital for EAF, along with improving cash flows from operations. And Cliffs has real infrastructure too, as in mines and pellet plants, that would cost billions to build from scratch.
Must have been Nathon Littlewood, who had coverage on CLF for years. Then Curt Woodworth took over coverage in March but maintained a 1/sh price target.
AK Steel (AKS ) surges more than 18% as Credit Suisse upgrades shares to Outperform from Neutral with a $7 price target, doubled from $3.50, after the firm increases its U.S. steel price deck.
Credit Suisse says it remains "very bullish" on the U.S. steel industry, and its new supply/demand model for the U.S. flat rolled market indicates continued deficits for value add sheet into Q3, supporting prices well above fair value levels.
The firm raises its price targets on all steel stocks in its coverage universe except Commercial Metals (CMC +1.9%), owing to rebar spread risks
They cannot keep CLF at 1 for much longer. It contradicts there evolving thesis. Expect more upgrades from the analysts.
U.S. steel prices could be running out of steam as scrap tags lose ground and idled Chinese capacity re-enters the market, according to analysts. It appears that U.S. (hot-rolled coil) prices may have peaked, Gordon L. Johnson II, managing director and senior analyst at New York-based Axiom Capital Management Inc., wrote in a June 6 research note. Turkish scrap prices have fallen 25.8 percent since a mid-May peak, he wrote, noting that Turkish scrap and U.S. hot-rolled coil prices have trended together since October 2007. Domestic ferrous scrap prices are also falling or flat, Evan Kurtz, an analyst at New York-based Morgan Stanley Equity Research, wrote in a June 5 note. Prime scrap grades could hold their ground in June, but obsolete grades look poised to fall by $20 to $30 per ton inland and $60 per ton in coastal markets, hammered by weakening export demand, Kurtz wrote.The early read for July is another down month. While near-term conditions for steel remain tight, cost deflation could curb momentum, he wrote, noting that scrap trends often foreshadow movements in finished steel pricing. U.S. obsolete scrap prices have dropped because peddler flow and demolition work ramped up this year in response to seasonal factors and higher prices, thereby increasing supply, Kurtz noted. Meanwhile, low global billet prices have put a damper on exports to markets in Turkey and Asia, thereby reducing demand, he added. Another bad omen for steel: Nonresidential construction spending in April registered its lowest year-on-year growth since January 2014, Kurtz wrote. It clocked in at $403.5 billion, up only 2.4 percent from April 2015. At the same time, significant quantities of Chinese steelmaking capacity are being restarted in response to higher prices in the first quarter, Yubin Fu, an analyst at New York-based Goldman Sachs Commodities Research, wrote in a June 6 note. Massive blast furnaces have been reheated in April and May, and prices have given up all the gains.