Vol on VALE
Outstanding reply, Skittle.
I already explained why. The 1st mistake was made buying them at the top, why make a second mistake on your thesis? I guess we will never see it the same way.
I guess no one else wants to discuss this but us?
Some people think it is a sin to do so. I do not. Smart people will admit when a mistake is evident and they will fix the problem at whatever price as a going-forward strategy.
I ran a business once where the core business was funding the owners other business ventures which did not contribute a dime to the overall corporation, but was a drain on the core. Those other enterprises eventually killed the entire business and shortly after I left the company to form my own, his entire enterprise was liquidated except for the core business which was sold and all the others collapsed. This is the story for CLF if they do not face the realities.
Other reason to keep it together could be the shorts. How do you think they've been making their money. If the sold off those liabilities, the shorts would have to go elsewhere
I have no problems what CAS sells anything for, even at lower / depressed prices. Holding these liabilities (that is what they are for CLF) costs money, adds expenses, pulls brain power away from focusing on the core assets / business, etc. CLF needs to be free of all of this and focus on what they do well, not what is costing them money, energies, resources, etc.
For the first time in 9 months I feel better about where CLF is going since CAS has control.
There will be some extra expenses in q3 for $10m on a payout of the CEO, new proxy expenses, the JPM and legal bills that will be due, plus anything related to the charges CLF had over the last two qtrs. I hope CAS has some stuff in the wings to mitigate the hit, especially if IO prices do not improve.
while I agree with the general statement you made...
For several qtrs now they said that this is transitional and they are poised to expand soon. Each qtr ER sees another beat down off the earnings and it takes the next qtr to rebound then it gets hammered again.
I am tired of this. They need to think about current shareholders a little more. This is getting to be tiring. They have not convinced WS to be patient.
Something needs to change soon for DDD.
I suspect CAS will not have anything to say until next week at the earliest, as CLF said yesterday they will wait for the votes to be certified, so it is wise for CAS to stay silent until his team is in place. I hope he starts his campaign on the shorts and the restructuring on Monday.
Not sure how interest rates play out because I suppose q2 GDP will be revised down, not up over the next two revisions, and about 1.5% or more on this GDP number was in inventory build that will slow down q3 GDP.
Right now the 1st half of 2014 is averaging a 1.9% GDP, which is much lower than the 2% plus we've averaged.
As I have been saying for awhile now, I do not see much on the global scale that supports aggressive growth going forward, and this will catch up in our markets soon enough.
The best thing for CLF going forward is selling off those assets so they can focus all energies on the core business and not be bothered with the stuff that's been a problem for CLF.
debate now asking how can the CAS plan work? People, please go away. The contest is over. CAS won. CLF lost. Let CAS do his thing and revisit the debate 6 months from now.
They will focus on the core business without all the prior distractions, expenses and debt that plagued CLF before and they will focus all the brain power in the company on the fundamental business units that drive top line growth and shareholder value.
Why does it have to be more complicated than that?
This board was ponded by CAS during the proxy and they may not feel comfortable staying now and leave?
I do not beleive they bring any synergies or continuity to CAS or to CLF and I hope they all go.
suits, pack their bags, leave, and a new strategy will be executed.
CAS needs $26 to be made whole themselves, but they are doing this for a lot more than $26. Maybe by year end we see a stock price of $35 pr better.
He was very clear he wanted management to stay on, saying they had the right plan as proven by the stellar q2 earnings. He disappeared two days ago from this board.
I can live with all of that to see these idiots leave.
He's been MI for a few days. Maybe like I have asking him over the past two weeks, is he really being paid by CLF to garner votes and disappeared when the results became obvious.
(Reporting by Kim Palmer in Cleveland and Nicole Mordant in Vancouver, Editing by Franklin Paul)
Cliffs Chief Executive Gary Halverson said at the company's annual meeting that due to the contested nature of the elections the results would be announced in the next three business days.
The wire headline is CAS received OVERWEHLMING support, meaning the funds were just as upset as retail, which is what I was trying to tell surf and others over the past few weeks, and today is proof.