Goncalves has stated that CLF will supply Nucor (NUE) with DR pellets (#msg-115154401), presumably after CLF builds a DR pellet facility somewhere on the great lakes, possibly in Minnesota.
Importantly, unlike STLD (#msg-115584532), NUE considers an active DRI presence an important hedge against a possible (perhaps likely) rise in scrap and pig iron prices (see CC quote below).
CLF would not be the only source of DR pellets for Nucor. Indeed, NUE has recently constructed an in-house DRI facility in Louisiana and has been running an HBI facility in Trinidad for several years.
The question remains whether NUE would be willing to collaborate with CLF in developing the DR pellet facility envisioned by Goncalves (i.e. will NUE supply funds for capital expenditures)? It is difficult to predict the answer to this question… However, I interpret NUE's CEO statements in yesterday’s CC to mean that he is open to further investment in DRI infrastructure (see CC quote below), albeit he gives no hint as to whether such investment would be a collaborative project with CLF or any other entity.
Quotes from Nucor’s Q2 Earnings Call of July 23, 2015
Quote:Regarding DRI as hedge against scrap and pig iron price rise:
Matt Murphy – UBS Securities Canada, Inc:
Okay, thanks. And then, I guess, the one other question is when you talk about the flexibility DRI offers, and I appreciate it, it probably plays a role with helping the current pricing environment and the scrap market. But presumably the flexibility means you run it hard when scrap prices are high, and you maybe don’t focus on it as much when they’re low. So I’m wondering how you’re thinking about your raw material strategy as iron ore spirals and maybe we see some more weakness coming in scrap.
John Ferriola – Nucor CEO:
Well, you are exactly right. It gives us the ability to switch back and forth and which area we want to press, whether it’s in scrap or whether it’s in DRI, depending upon what the cost
with good earnings, guidance, vision of profitability, and buyback the chart and ship can turn quickly on the dime. Couple that with large short position and this can explode. Last time I say this possible setup you have to go back to July 2008 when LCC hit a low of 1.45 and in the next couple of day was up to five. In the next three weeks it hit 10 before retracing back. So it is very possible and there is a precedent that I already know of.
On bankruptcy and $1 dollar value...We are getting real close for reversal..Time to start adding to existing positions..
schmickermack, that is exactly what a seekling alpha article is saying today. Just curious what your thoughts on CLF are long term...Thanks in advance.
I hope you guys are right...I will be adding even more to my already large position to cost average...only leads to better retirement long term with more shares...:)
I filed the complaint and got off the phone with Finra at 11:30
I briefly showed him examples and who the MM Axe was. He stated he could not comment on anything or their procedures but suggested from the obvious noted bear raids with one in progress that hedge funds trading CLF were going on notice.
Then look what happened. That wasn't by luck, I can assure that and my call timing is no coincidence.
I can easily see this at twenty plus two to three years from now if not sooner...with the price as where it is now that is an incredible return and possible retirement for some...holding and waiting out the BS going on...we have a CEO who knows the business and investing his own money into the company.
Sentiment: Strong Buy
I am still not convinced that manipulators will let this this pop up for too long and too much....I think they will sell it down quickly....any thoughts on this...I see mid threes the most only because ion bs nothing else
Vip, with great earnings and last couple of beats how do you say that the pullback has not been over the top excessive and orchestrated....
So OHT, you see clf making good earning and you keep screaming to short it and it will go bankrupt......yet now you say all they need to do is show their cards and gameplan to recovery and all will be well...do I understand your position correctly?
This is an ongoing event with different stocks based on overreaction of the common people and media induced articles. I have seen this many time, 2 examples that come to mid are LCC brought down all the way to 1.45 and ford to 1 and change. before big run up...Key is not to invest in bad companies that do go bankrupt...
expectations of earnings are really low...Even the RBC analyst is expecting a -.(24) result... Anything better will get this moving in a hurry and then buyback 2 days later will get this over $5 so it could go either way here. I am betting on the long side.
But only 1 million to tank as much...Makes no sense to me other than complete manipulation.
i did not see one posted on IHUB...I will ask for a link...and post it here if I get one.
we have not seen anything yet...Short squeez of century is at least 100 to 200 percent in couple days...This is not even wroth mentioning yet.