Are you kidding me ??? The company is bleeding cash and the price of its primary product is at a 5 year low and dropping and the board of directors comes up with a stock buyback program ? I can think of better uses of their cash. The only purpose I can think of for this program is to buy back stock and then award this stock to insiders. Otherwise there is no benefit to anyone for this waste of corporate cash.
This is not 1790, its 2014. The land of limitless resources and land no longer exists. America needs socio/economic systems that take this fact and portions the finite resources and land for the benefit of all, not just the 1%.
Egypt is a desert, that's why they can't feed their own people. The US is blessed with some of the best farm land in the world. If we want the people of Egypt to buy our useless #$%$, we need to keep them alive.
The genesis of Arab spring (ie: revolts, revolutions, and gov't overthrows) is the doubling of food prices. When the average citizen in Egypt spends 50% of their income on food and then the price doubles, they have nothing to lose so they take to the streets, or slowly starve. The doubling of food prices is directly tied to Ethanol. We would rather burn our food in our cars than feed the world. But America talks a good game.
Whose to say the CASA isn't shorting CLF and intends to blow out the company ? Wall Street is full of slimy characters.
People in the board room are like politicians, they tell you what you want to hear, they stall, they wait for things to improve, and if they get lucky and things start to improve, they take credit for it. If things don't improve, I'm sure there will be a thousand reasons why its not CASA's fault. This sector of the economy depends on growth in other sectors of the economy, which will either grow, or not.
Buy high and sell low is not a prudent business strategy. CLF would be better off shutting down operations at money losers and waiting.
If the anti-fracking initiative wins, than the old nautical term comes into play, "no bottom". This stock could go into low single digits and/or the trust could become insolvent. There are better energy plays available, look elsewhere.
There is a floor under oil prices and we're near the floor right now. Now is the time to begin making acquisitions and adding to positions. Oil prices dip twice a year and peak twice a year based on refiner shutdowns and maintenance schedules. Its refiners that buy crude oil, not the consumer. And oil producers are not going to sell their oil for less than it costs to produce and a significant portion of oil being sold comes from high cost shale and off shore sources and when oil prices reach a certain level, this oil comes off the market. That's the floor.
With MVO, you don't even get what's left in the hole. This trust ends after 20 years. That's it, no residual value, even if there is oil left in the wells. The share price has to reflect that the remaining dividend payments will include return of capital plus a return on capital. With @12 years left to go, an investor needs 8.3% a year in capital return, and then another 6.5% return on capital for a dividend income of 14.8% per year. And in 12 years, share value will be $0.00 Current dividend is 12.7% per year. Do the math.
Market go up, markets go down. One of the reasons why the 9+% dividend is so nice. If Linn finishes flat on the year, you've still made over 9% return.
After CLF makes a big move up, the analyst's will upgrade, but only after the move. If you follow these business school interns, you will lose money. First job out of school at investment banks is as an analyst. When they finally figure out what they're doing, the company moves them into a real job handling money.
Casa has won control of CLF's board, now what ? Casa can't change the market dynamics for iron ore. CLF's is still a very high cost producer while the price for iron ore drops. Short covering is going to drive CLF's stock price higher and then its time to sell. This puppy is going to slowly strangle over the next two years.