The only upside I can think of is, if CLF goes bankrupt (unlikely), than the stock price for MSB should drop to less than a dollar. This would represent a great speculative buying opportunity for those willing to wait a few years for a new owner to take over and start mining again.
The iron ore industry is flawed. Competitors have developed massive new mining operations that produce iron ore for a fraction of what it costs CLF to produce their iron ore. This overcapacity has driven iron ore prices down and they will stay down for the next few years. CLF's has to deal with this issue, and its current mgt seems to not understand whats going on. That's why the share price of CLF is down and will remain down until mgt does something to deal with this overcapacity, low price issue.
The last time the mining company for MSB lands went bankrupt, I believe in the 90's, MSB stock price sank to less than a dollar. If CLF goes bankrupt, the same could happen. I don't think CLF is in danger of bankrupcy, they just need to make some major changes to the way they do business, spinoff some money losers and scale back to being a much smaller company.
Energy in general is down so this makes it a good time to take some profits off the table. Linn has been straight up since 27 without a pullback. Give it time, this too will pass. Weak hands are leaving and some others are taking profits. Linn will be in high 30's by Christmas.
The SEC found nothing wrong with Linn Energy's books. Cramer however has been barred by the SEC from trading on Wall Street. You're someone that "can't see the forest for the tree's". Tell your mom you want to put your huge profit into a new X-Box.
Obama gets the blame for a lot of what he inherited from BUSH. Total financial meltdown of the economy, from which we're still recovering. Economists estimate it will take a minimum of a decade to heal the economy and may take a generation. And when it comes to politics, its all about the economy. Forget the mess that George W. got us in with Iraq and Afganistan. Still don't know why we are fighting in Afganistan. At least with Iraq we all knew it was about oil.
This deal is for Siberian nat gas to China. No impact on anyone else. If the Nat Gas didn't get sold to China, there would be no other buyers because of its location. China is paying for the development of the field and infrastructure needed to transport from Siberia to China. That's how desperate China is. This nat gas will replace coal in China's energy diet. Another nail in coals coffin.
I don't think there is a more incompetent mgt team than the one currently heading CLF. Their only solution to solving CLF's problems seems to be cutting capital spending. That's it. Talk about having monkeys in charge of the zoo. I appreciate the entire industry group is down big and there is significant excess capacity right now in Iron ore, but, there are moves that CLF mgt could make. If nothing else, they could communicate. Say something, anything. They seem to be hunkered down in their bunker watching their stock options wither away. If the current CEO has no new ideas, its time for him to step aside and make way for a fresh perspective. Casablanca may not be the solution but they sure aren't the problem.
The only thing holding back the advance of civilization is organized religion. The Catholic church is strongest in the poorest parts of the world. Where people have nothing but faith to rely on. What is considered normal scientific discourse today was cause for burning people at the stake 800 years ago.
Also, what we know as the French today were relatively late arrivals in France, preceded by numerous tribes that ebbed and flowed through French history. Don't forget that Julius Caesar, during his conquest of Gaul, killed off more than half the population and burned most towns and villages to the ground. Napoleon's invasion of Russia killed off almost half of all men between the ages of 20-40 in France. The French people of today are not the French people we know from history.
BRY shareholders received LNCO stock, they are swapping out, having already made a 60% return with the acquisition. This churn will slow down eventually and the differential will narrow.
Royt had all their oil hedged at $115 through April. The hedges have now come off so their revenue is going to take a hit in May, reported in June. I'd wait before investing until you can see what effect the lower revenue is going to have. Also, their oil properties are in California and California now has water rationing, which will impact their drilling activity.
I agree, the only issue is how many shares will Lynas have when they gain profitablility ? 10,20,30 billion shares ? Its already a $0.13 share, how low can it go. And how many more shares can they sell at these prices ? 10,20,30 billion ?
Any management team that buys back shares and considers that to be the wisest use of capital should be thrown out of the offices. You could put a monkey in the CEO chair and come up with share buyback. All its good for is to maximize managements bonus packages.