Stock is still holding its trend line upward from the run that began at $14. It has not broken the trend line yet. We need some news for sure.
and now we need at least two reports pro-proxy to know if the shorts are sticking to their postions, hitting it harder or starting to cover. The volume of late does not imply much covering or buying. So far CAS has not given anyone reasons to cover or WS to buy.
I can waith the 90 days they asked for. They begged for our votes and they won our votes. They promised something different and I want to see something different.
The first step is taking out the garbage and that is being done now. The following steps will come with an announcement soon, I hope.
We've just been through months of info coming out during the Proxy battle from both parties with general statements of purpose. The market needs something earth-shattering for CLF and anything less will be ignored. This company is still viewed as toxic to WS.
CAS could and could come out now with a pre-announcement of some type but it would have to be something meaningful. The company dog won't cut it.
I am okay with a 90 day plan from. There are things they will certainly discover now that they could not have know of prior to the day they took control ofthe company.
CAS clearly had an outline of the issues, but he could not possibly have known all of the facts/details before they took control. This 90 day due-dilegence process is improtant, as this will help them confirm their startegies or modify them somewhat. Regardless, the delay of 90 days, in my views, helps, not hinders CLF going forward.
I only wish they would provide a broad outline for CLF now before he gives us the full details in 90 days. So long as WS sees CLF operating under the same plan as the old CLF, shorts have no reasons to cover and WS has no reasons to buy.
1. Proxy related costs
2. Legal costs
3. Advisory costs (JPM and others)
4. Usual hits CLF had over the prior qtrs from normal operations/idiling/etc
5. Golden Parachutes going on now
6,. Whatever else...
I guess nothing better can happen for us until the garbage is taken out, so this qtr will have a lot of #$%$ that will be a hit to earnings.
In his letter, Sullivan said he said he had initially been looking forward to continuing at Cliffs, but his view changed after the new board's first meeting.
"I have served on many boards in my career, both public and private," he wrote. "I can assure you that I have never experienced anything like what transpired in our initial board meeting."
Addressing new Chairman and CEO Lourenco Goncalves, Sullivan said: "It was clear neither you nor the new directors wanted to hear anything that might be contrary to your pre-scripted plan."
Sullivan said he had concluded he could not adequately represent all Cliffs shareholders on the board.
Separately, Cliffs said it would have to pay former CEO Gary Halverson $11 million under change-of-control provisions adopted by the board last year. It said it would also need to make $16.9 million in similar payments to other officers and employees.
Goncalves, Casablanca's pick for CEO, has said he plans to refocus Cliffs "on a new strategic path" that builds on its strengths. In an interview with Reuters in February, he said he would focus on supplying iron ore to steelmakers in the United States, not selling into the competitive global iron ore market.
This report is not a good gauge. The settlement date was 7/31, the due date was 8/4 and the dissemenation date was on 8/11. The next report will be a better tell to tell us if the shorts pulled in some following the CAS win.
I am with you on this 90 day plan. I just wish they would announce tomorrow the general direction that they are seeking with a time-line on the full announcement that's pending. I want them to give some reasons now for the shorts to begin covering and for WS to start buying. As long as WS thinks the plan they are going to operate under is the same as the old regime, things will not change for the stock and could fall back to prior lows.
As long as CAS operates under the CLF plan, there is no reason to buy the stock and every reason to keep shorting it. To think CLF can keep all the assets and expect a different result is nuts. Shorts will keep pounding it for the same reasons they did under the old regime.
CAS has to sell off the int assets then you will see a rebound. BHP and RIO are at 12 months high. The problem isn't IO, the problem is the old CLF plan of holding onto the junk that is holding the company down
I am not speculating here. I just want to see something different and said the reasons why.
I agree they need the 90 days to formulate a plan and to announce their strategy going forward. I just do not want the CAS plan to be a mirror of the CLF plan. Otherwise, we will be here another year complaining about why CLF languishes.
do what CLF was doing, which is holding the international assets.
I maintain that CLF was heavily shorted on their prior strategy, not on poor PR by the company. WS was well aware of what the CLF plan was and they shorted CFL in force. If CAS keeps the same plan in place as CL's plan, the shorts do not go away.
The only other way CLF stock price rises is if we see a favorable supply/demand imbalance for IO, creating a 30% bump in IO spot price. Does anyone here think that happens anytime soon?
Outstanding conversations here on this particular thread. I agree with everything written in all of these posts.
I also would like to see these acquisitions being digested by the company and adding to earnings, which would cause the share price to rise. So far DDD has not produced what they have been promising every qtr in their CC, the promise for earnings growth. We need that.
There will be time to make more acquisitions later.
The company should be doing a much better job outlining the acquisition strategy in a more favorable light, because so the strategy is not helping DDD share price. We need WS to buy the story but they are not doing so.
CLF is being hurt in large part due to its obligations, which mostly comes from its holdings of those costly properties. The idea of holding them until the market price allows for a better price is crazy, as evidenced by WS refusal to buy the stock.
Look at the charts of the stocks I mentioned, and ask yourself why CLF (the stock) is in idle mode.
The CAS bump is turning into a fade and something needs to be done very soon for momentum to occur and shorts to cover.
Todays drop in CLF and the sector is mostly off the China news. Tomorrows drop in CLF is going to be from news on business as usual until they sell those properties.
You are all over the place on this debate. One day sell them. Next day hold them.
So tell me, why do you think WS is holding off on buying CLF while RIO, BHP, the steel companies, AA, the materials spider sector, FXI, etc. all trade at 12 month highs while CLF is still below its share price of 12 months ago.? I suspect it is because they still hold this stuff. It is a drain on the company.
The only stupid thing to do is hold a drain. Why do you think CLF can not recover. How much longer do you want to wait on your thesis to hold until you get your price back? That's aka ignorance or arrogance.
Admit the mistake, which they did. Now fix the mistake. Your idea may take 10 years. Do you really want to wait for that and keep spending money and people power on idled properties.
More importantly for CLF, would this story be different if CLF sold all its non-core US assets, along with coal?
Who is to say for how long we'll be lingering with low IO pricing? I suspect a very long time. Why not get rid of it now and put all the energy and resources and people power on the US trades?
I think we would have a much higher share price if those sales happened, even at todays lower market valuations.
Material stocks around 12 month lows: CLF, VALE, WLT, BTU (all of these are below where they started from 12 months ago). I wonder if part of the problem is because of the coal businesses they have.
Material stocks at 12 month highs: RIO, BHP, X, AA, AKS, FXI, SCCO, FCX, XLB (materials sector spider fund)
There is a broad rebound in materials, just not for CLF yet.
Agreed. Musk had a story to tell where CLF did not, at least until now, so it worked in the past. I think it is as crazy to be long TSLA as it is to be short CLF today. Time will tell.
making. I have no idea what caused the move in 2013, but there are good reasons for this move up. I hope over the next two months we see something above $30 for CLF and take out the 2013 high.
CLF stock price will not rise significantly until that happens. So does CLF wait for a hopeful turn up in commodity prices to much higher levels (which I do not believe happens) or does CAS sell and here and start healing the core of CLF revenue generating businesses? I hope they sell and if they do, we'll all have what we want, which is a stock price north of $30 for starters.