I do understand the basic accounting, but when you describe a perfect scenario that allows Cliffs to run Bloom Lake at a profit without expansion which has
I was not talking about the portfolio sale, just the flow through agreement. I would assume that the company taking the loans over via the flow through agreement would take the loans at below face value. My concern is how much below face value. If you sell a billion in loans at a penny discount, that's a .30 hit to earnings. If you sell at a at a nickel discount, your earnings take a hit of about 1.50.
[ And Asia Pacific will generate over 4 million tons with a better profit margin than Q1.]
I believe that average SBIO prices are lower in Q2 then in Q1. SBIO bottomed in the end of April, which is in this quarter.
My problem is with your statement #6. Future earnings will depend on the flow through agreement and the discount they have to sell their loans for. I am assuming we will earn around 2.50, with a PE of 20 I can see a 50 stock price.
I also have SGEN that I bought in the low 30's. Sold my trading in SGEN in the low 40's, holding my long term shares until they are bought out.
Looks like we hit 7.33 this morning. Just put a chunk of trading shares up for sell at 7.30 and another chunk at 7.42. We will see if it hits.