Try looking at the whole balance sheet. When CLF takes in cash from the issuing of new shares, their cash will increase by the same amount they sold... no change. Now if they take that cash and buy back bonds at a 50% discount to face value, for every dollar they take in from the sale of stock, they reduce their debt by $2 and reduce their interest expense in the future. As a result, their balance sheet is greatly improved and their future earnings will increase. Exactly what is wrong with this?
The Republican Party walked out in front of the bus on their own. Should have never allowed eight candidates to run against Trump in the beginning allowing him to get a foot hold. Instead they should have picked one candidate to run against Trump in the beginning as the Dems did with Clinton against Sanders.
Please pull up page 13 of the last 10Q. You will find listed each bond with their interest rate listed. Then you will find the Annual Effective Rate listed which is what CLF paid for that quarter. It is clear that the rates are not fixed and they float with the bond ratings.
It is all about earnings. Paying down debt and getting an interest rate reduction, CLF can add 50 cents a share to earnings alone. On top of US and Asia Pacific earnings we can easily get to $2 a share. At 16 times earnings, then we are talking $32 a share to start with. Future earnings can easily exceed $3 a share and it will get to $50 a share.
I agree, Trump called it yesterday while Clinton had to wait until official notices. People want someone that can react fast to terrorist threat.
All commodities move in cycles, just wish I would have picked the bottom of the cycle instead of jumping in too soon. I am convinced we will see CLF trading in the $50 to $60 range when the party is in full swing. Will I sell then, no! Holding out for the $100! With the huge short position and the counterfeit shares that were created, we could see the price move up that fast.
Most of the outstanding debt is in those 2040 bonds, I am ok with a 35% discount. Then even if it is trading at 101 to 100, the reduction in debt and interest improves the balance sheet and future income statement. Furthermore, debt reduction should increase their credit rating that will result in interest rate reductions!
When you posted yesterday I was thinking iron ore was trading in a tight range. Now it looks to be having a break out to the next level which could be in the $70 range.
The Mesabi Trust needs to see iron ore demand much higher to keep the flow of iron ore out of their holdings. CLF can cut off shipments from Northshore for a whole quarter in today's market. And if they pick up that Essar mine, they could shutdown Northshore for a year. Mesabi would be wise to renegotiate their royalty agreement or they could be another Wabush.
Kind of busy the last 6 months, Just enough time to read some of the postings here and appreciate many of you staying on top of the breaking news. Still waiting for a short squeeze which will take this stock much higher.
When debt hits $1.5 billion, interest rate reductions and current earnings will allow CLF to hit $2 a share.
Which should put US pellets at $75 to $80, good profits for US iron ore and for Asia Pacific. US construction is really picking up fast and it won't be long before we see another $20 added to this price. I am paying $100 a sheet for drywall, not even during the boom did I pay this much!
I am not saying Trump is qualified, saying Hilary is not qualified. We really have no choices here. I just can't stand the typical political responses out of Hilary on this one.
In bankruptcy, you cannot bankrupt the state. Back taxes, loans, etc... all have to be paid back no matter what and paid before any secured loans. This why many assets are sold for taxes only.
With the huge move up over the last few months, people are quick to sell or short. Seen this happen many times in heavily shorted stocks I have played in the past. Again, we have not yet seen a true short squeeze in CLF.
$46 a ton for pellets is amazing! This net income number is good as well considering there was no gain from buying back bonds at a discount this quarter. Last quarter they were at a loss when you removed the gains from the bond buy back.