Cliffs Natural Resources was upgraded to overweight from neutral at JPMorgan. $7 price target. Earnings estimates were also raised, given higher steel pricing, JPMorgan said.
Ru kidding? This is "normal" for this stock pops after earnings than moves down. This will not stop until it holds over 5 for at least 30 days
covenants r there if they borrow or not, and they r in the process of selling built up inventory so view it as a bridge loan. further, they have 60mm sitting on balance sheet doing no good (plus pending cash on the way from sales / settlements plus IRS refund). I'm not being critical, they did a bang up job I just think it was a window which is now closed
wouldn't u borrow 20k to pay off your 100k mortgage?? not sure why people don't understand THE DEBT WAS TRADING AT A HUGE DISCOUNT
not only surprise but also if u listened to the call, u could hear mgmt team confidence in their voice , strut was back and they basically said guidance was conservative ..
I'm just saying the 2018 bonds were a steal in the low teens "once in a lifetime" will not see that again.. in fact it wouldn't surprise me to see them go into the high 80's plus..
even at 50 cents every $1 drawn on the line buys back $2 in debt !!! pay back line when inventory sells in summer months
they should have drawn on the ALB facility to build inventory and have used the cash to buy back more discounted debt! what good is that abl line when they never use it !!!
very surprising to me, I was expecting break even to 5 cents.. wow cant wait for the call and forward guidance!
No. But I think that approval was part of the overall plan to tank the bonds and fix the balance sheet on the cheap ..