Oil is down for two reasons, dollar value spiking against all other currencies and the semi-annual refinery shutdowns for routine maintenance and change of crack spreads from refining extra gas to refining extra home heating oil. ISIS, Ukraine, Ebola, etc,, are justs talking points for CNBC nimrods and politicians. By Christmas the talk will be of rising oil prices and its causes. And more talking head nonsense from CNBC and the politicians.
Problem is CLF is a high cost IO producer, BHP and RIO have a significantly lower cost IO operation. IF IO prices continue to decline, BHP and RIO can get the US market after CLF goes bankrupt. This dynamic plays out all the time in all industries. Remember Packard cars ?
They really aren't late day sell offs, they are really a late day absence of buyers. The volume doesn't increase, there just aren't any buyers around at the end of the day. I think its the nature of this category of stock.
Falling IO prices benefit US Steel. Overcapacity in IO mining does not bode well for IO pricing in the future. I think CLF has bottomed but I don't expect much of a bounce. CLF will trade at this level for the next few YEARS, or until worldwide demand for IO grows to match supply.
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.