CEO of Anglo will be speaking later today to investors. They are going to be making more cuts to try to survive this and sell some assets to raise money for their debt it seems.
Like CLF and BL, they took on more debt in the super cycle to feed China and now are suffering the same collapse. With everyone trying to sell off assets, purchases prices are going to be minimal.
I enjoyed reading where they put the blame. Insurance company thst insured the BOD and management pay the claim. Legal fees are small so this was not likely anything contested in a big way. It does not say how $ to be distributed.
What sparks it s desperation and/or hope for this to happen. Also speculation because valuation is so low. I am beginning to wonder f there is merit to the arguments being made by some on WS thst asks who really needs Twtr and. What would they do with Twtr?
There is so much confusion on this company. A lot of it may have to do with leadership trying to make MAU the metric all these years and saying they will be like FB. This is one f-d up company with a serious identity problem.
They have yet to figure any of this out, and failed to articulate what or who they are now and going ward.
Over the last 3 weeks CLF has risen about 70% from the 1.20 low to an intraday high above 2.00 on Friday just before the first hit piece came out.
Clf rose close to 30% in the last 2 days. These moves caught every short off guard and not only on clf.. Look how well every left for dead commodity stock did as soon as the dollar started to weaken.
However, specific to CLF, Clf was the only IO stock that was rising up from the grave on declining short interest prior to the dollar story. Clf rose daily since the ER and CC. The news in the hits pieces from Friday did not impact on CLF before Friday.
Those stories were released in a collapsing market on purpose but Clf came back to close up off the day's lows in an ugly tape.
Those hit pieces were deliberate and looks to have failed.
How do 50m shares cover?
Look at a daily chart for 30 days. About 3 weeks ago CLf started rising in SP to over $2.00 from 1.20 without interruption in a declining market. Yesterday's vol was the 2nd lightest vol day in that time period. Clf rose 70% from the 1.20 low intraday yesterday and closed up over 65% in this span.
Until the first hit piece came out yesterday CLF was the only IO stock up on the day. The trend for a weaker dollar was being floated on WS to last while longer and all commodity stocks got a decent bump off this and most commodity sectors fared better yesterday than the overall markets.
AH trading yesterday: 4:12pm 3,100 shares took Clf to the lows of $1.70. Next trade happened at 4:43pm on 12,523 shares that took Clf to 1.8888 highs. Next two trades happened at 4:50 for 300 shares followed by 100 more shares taking SP to 1.73. Hardly any carnage or real worry.
How do 50m shares cover here? This, I hope, is the problem they have and the reasons for the articles calling for CLF death. Is it resonating anymore where it matters, on WS?
You are right. These stories have nothing to do with helping out Clf on purpose (maybe by accident though). They are likely intended to try and help out 50M shares short and what looks like no means to cover. I could be wrong on this. These are the same people who wrote the death story on CLF for 2 years and drove up short interest. Why are they switching now? It certainly is not for a paycheck from LG to help them out
Clf rose in SP since the cc until today. Once the hit piece came out today Clf dropped in SP on about 270k shares than rose back to the prior range it was In on about the same number of shares.
AH had a trade of over 12k shares that brought Clf to an AH high of 1.88 than two small trades followed on a few hundred shares each that dropped SP to 1.73 or so.
All in all it looks more like a major attempt to scare people. Another hit piece followed later on that was as harsh as anything I read in predicting the demise of CLF.
They are either affraid of not being able to cover or they are right about Clf. Given who is writing these reports I have my suspicions.
We are all fearful of the next month. Make or break time. We had the benefit of a weaker dollar this week. I hope that trend continues. The markets need this now, and Clf clearly needs it as well.
I still dn't know how they can cover.
They are hitting Clf as hard as anything again and this time pulling no punches.
Maybe 50plus million shorted shares is the reason. Nothing much was said since the cc or the run from 1.40 until now and a 30% run to intraday highs today.
Do they really want to work this hard to squeeze $1 out of CLF when Bhp and bale sit there with so much more to take away?
I guess we won't know for awhile but the blatant hits are unlike anything we have seen before
I think it tuns up into close
i wrote about the fake economy for years and the reasons for it (which are explained over thsi thread) and eventually it would have to break and be revealed for what it is and this may be happening now. only good thing about this is it will make it harder for Hillary or Bernie in their run because both have said the idiot did a good job on the economy
Some people are so partisan. I insult my party harder than the other party. I call stupid, stupid, no matter whe says it. Some people will never admit realities.
Find me one CEO who credits Obama for the economy or their company growth. Just one. You won't.
GDP for 8 years is below 2%. Try 0 interest rates. Free money. stock buybacks, Divi increases. These are the reasons the markets rose on 15% of all stocks because the other 85% of stocks never recovered. Also look at the major cost cutting companies did, Your true unemployment rate is 10% or more and MOST of the jobs still being created are not full time jobs.
Look at the real economy
also suspicious of day/time for release, when markets were taking on a tanking momentum.
Everything he said was ignored since the CC. SP rose steadily for 2 weeks. Bet they are on the wrong side of this and since they do not disclose short positions, we can only conclude
The contents of the article were ignored until now. Until someone wrote about it today, SP rose since ER and the CC. Suspicious as hell but 250K plus shares sold it down 3%
Lets see where it closes
Wonder if it correlates to the sharp drop in SP from 1.97 to here. The drop staterd at 12:40 on big volume. As for the bank itself, they are damn near BK themselves.
Suspicious or some other motivation if they were heavily short and the 30% run is hurting that position?
It's overhang from the 2008 and 2009 collapse per Obama. Amazing how everything until now was on his genius, now the slowdown is tied to the prior financial crisis. Is he the only fool who believes in himself?