I am more of an independent and vote based on who can do the best job. I don't think Trump is really qualified to be the President . But these attacks play to his advantage regardless.
I remember President Carter was leading Regan by a wide margin in 1980 Election, but once his Rescue plan to free the Hostages held by Iran failed, the tide turned toward Regan swiftly who said he will do whatever is needed to free them once elected . As we all know Hostages were freed as he was taking the oath for becoming the President. Similarities exist here that may benefit Trump.
And she has nothing new to offer. I think she is scared #$%$ about losing and blaming Trump while attacks continue at WILL. Our ways of life has changed for ever.
What happened in NY, NJ and MN can't hurt but help Trump in his campaign for Presidency. he is now tied or leading to most of the 12 battleground States. ISIS took responsibility for NY and NJ Bombing. Better the Trump chances, better for CLF and Steel stocks.
CLF's main problem is the pile of debt that the previous MNGT accumulated. Once the debt gets down under $1.5 B and manageable, CLF can service the debt and make profit even if IO is around $45/Mt. Hope LG can get the debt down under $1.5 B by the end of 2017. CLF needs the minimum MKt Cap value of $2B and Improved Financial rating like B minus at least from the current C rating to get better interest rate on its debt so it can cut the interest cost. The new Mustang pellet Operation should also be more profitable and help improve earnings.
VL listed it at $2.4 B in their 9/9/16 report. so if you deduct $ 300 mil, then it will be $2.1 B.. my understanding unless you or someone here have different info.
If CLF paid off $300 mil debt today, their net debt is now reduced from $2.4 B to $2.1 B. If IO price go into Low $60's then they may likely be able to sell Their APIO mine for some $300 mil. That can bring debt well under $2 B.
LG is Projecting EBITDA of $550 mil, and if you deduct $163 mil ( $180 mil minus $17 mil reduction)Interest and $150 mil in D &A, will leave them with $237 mil gross profit . Since Fed Taxes will be nil and NMF in 2016 due to all the credits, their net profit will be also $237 mil and they can pay down additional $100 mil of debt. All this can reduce the net debt in the order of $1.7 B.. just my thoughts.
bottom.. has CLF already used up $300 mil that they generated from new shares to pay down the debt? I don't remember LG saying that its already done.
Have written 10 $5.50 Strike weekly 9/16 expiration Puts @ $0.20/sh premium. They might be safe and may not be exercised if SP closes at $5.50 or above, but prepared to buy and add 1000 sh more to my collection if assigned.
In spite of DOW down over 110 points today. Right or wrong, Trump begins to gain momentum in battleground states like OH,FL, NV, IA and CO and if he wins, watch out. Steel stocks and CLF will move up very rapidly.
The Value Line reports the following key Stats about CLF in their latest review.
Timeliness ... up from 3 ave. to 2 Above ave.( 1 being Highest)
Safety.................. 5 (Lowest, 1 highest) same as 3 months ago review
Financial Strength..... C ( A+++ highest)
SP Stability...................5 ( 100 highest)
Q-3 earnings............$ 0.10,( for yr 1016 est.....$0.90 ; yr 2017 est. $0.95)
Cash Flow......... $1.22(2015) ; $1.40 est.2016 ; $1.55 est. 2017
LT Debt........................$ 2.49 B (B4 $300 mil Reduction)
LT Interest...................$ 180 mil/ year
Dep. & Am................. $150 mil
Net Assets...................$779 mil 6/30/16 ( incl.$108 mil cash)
Net Liab........................$ 376 mil
Mkt Cap.........................$1.1B( when SP was $5.75)
Insiders Buy decision... 110 as of Q-2,16
Insider Sell decision.........81 as of Q-2,16
EBITDA per LG $551 mil minus $180 mil Interest minus $150 mil D&A = $221 mil gross profit B4 any Fed Taxes which are NMF
Here you go... Make your own conclusions.. Good Luck Longs
NO.. it was not.
2014 High... $26.6
2013 High...$ 40.4
These are the facts.