I doubt it. If it were due to option expiration, MMs just need to take CLF down slightly under $3 and will make those 3 option calls worthless.
Iron ore sank to the lowest level in at least six years amid speculation that mills in China are cutting back steel output, hurting demand for the raw material while supplies from the biggest miners expand.
Ore with 62 percent content delivered to Qingdao fell 1.9 percent to $43.89 a dry metric ton, the lowest in daily data dating back to May 2009, according to Metal Bulletin Ltd. The commodity is headed for a third annual retreat, and Tuesday’s fall eclipsed the previous low of $44.59 set in July.
For “low-cost producers, it makes sense for them to continue to increase production,” Ivan Szpakowski, a commodities strategist at Citigroup Inc., said in a Bloomberg TV interview on Tuesday, referring to the largest miners. “They’re still profitable.”
Iron ore has been battered this year by rising output from the world’s biggest miners including BHP Billiton Ltd., Rio Tinto Group and Vale SA and faltering demand for steel in China, where mills account for half of global output. Goldman Sachs Group Inc. said last week that the global iron ore market is oversupplied, with steel consumption in China remaining weak. Policy makers in Asia’s largest economy have been attempting to steer the economy towards consumer-led growth and services.
“The market has underestimated the demand destruction from the economic rebalancing in China,” Zhang Yifan, head of foreign exchange and commodities at Guotai Junan Securities Co., said on Tuesday before the price data were released. “The worst is still ahead for the ferrous industry.”
The steel industry in China is reaching a critical point, according to Andy Xie, an independent economist who’s been bearish on iron ore prices for years and sees a drop below $40 before year-end. Mills will have to cut production, said Xie, a former Asia-Pacific chief economist at Morgan Stanley.
was thinking to buy 5K shares at $1.
If one can't take a risk, then, get out of SUNE. There are tons of other stocks that one can purchase. Why buy SUNE if one thinks it is risky? The market in itself is risky. No pain no gain.
sounds like CLF is in cash crunch and will likely run out of cash soon and will likely go BK in 2016.
Here is my prediction for 2016....Oil hits $20 as expected and bring all commodities to their knee. CLF under $1 and reverse split stock.
does not seem to do a damn thing for this stock except keep it from not going down further.
Won't help much for UPL. UPL is destined to be doomed with its huge debts.
Ultra Petroleum (UPL): This Texas-based oil-and-gas company currently trades just above $2 and shares plummeted 82% in 2015. The company has $62 million worth of debt coming due in March and has $25 million in cash, as of the third quarter. The company's current ratio is 0.45, which is well below the more prudent 1.5 to 2.0 range. While problems with Ultra Petroleum's balance sheet were widely assumed, Raymond James downgraded the company to Underperform from Market Perform due to balance sheet concerns and a weak outlook on natural gas.
because they are losing money and have huge debts. Until they can show cash flow positive like they promised, the upside is limited with recent debt exchange and dilution.