It won't be very long before LG puts a dagger in the hearts of the shorts. I imagine this will bring himself (and us of course) great pleasure. I have a hard time grasping why they maintain their attack on CLF given how well CLF has executed on their plans.
I did the same this morning and yesterday. Just pointing out the obvious about how CLf is regarded given all the favorable aspects going on within the company right now. This may also be about helping shorts cover. Do not know for sure, but hard to explain the reaction after yesterdays activity and divi announcement
For IO stocks CLF is down 5.5% while the worst for the others is 1.8% down. WS still has a special hate factor toward CLF
CLF confirms divi, it has a nice close on good vol yesterday, and this morning they kill the stock again. Blocks of 5,000 and higher are 80% green (buyers). A lot of downside is happening on small blocks of trades so far this morning.
Looks like maybe the trade is setting up for a good upside pop.
Bigger question is why do people trust that call given everything CLF has shown so far?
This was the closing sentence in LG letter (found on the CLF Web Page) following his ER and CC.
CLF is executing on nearly every metric they laid out during the proxy and BL will be decided by year-end.
At some point the shorts will either take it in the shorts or they will capitulate and cover their shorts. So far they seem to have been stubborn in doing so. However, when CLF announced the Nucor story and the dividend news, their was massive volumes in CLF trading on otherwise dismal vol levels on a daily basis.
We will reward our long-term shareholders and our loyal Cliffs’ employees....NICE!
The cash dividend will be payable on Dec. 1, 2014, to shareholders of record as of the close of business on Nov. 15, 2014.
This is from the release by CLF.
others. Steel and aluminum are also up while cooper and coal mirror IO.
CLF needs help from firmer IO prices which comes from increased demand (which will not happen based on global GDP's) or changes in production (which depends on what VALE, RIO and BHP decide).
RIO and BHP are active and positive in pre-mamrket trading, which hasn't happened in awhile now. Maybe it means something better for the sector on a down morning for the indexes.
Seems like 70% of the activity today is being done in blocks of 100 shares whenever I watched real-time activity. Amazing!
and unless there is some type of favorable news, this stock coasts. Although CLF is up over 50% in a few weeks time, the volume is lame and the selling/buying is in blocks of hundreds rather than 5,000 plus.
With the indexes at all-time highs, perhaps this is the best we get until something else happens/changes.
This may explain, in part, why CLF is trading back today to pre-news levels on Friday, along with an overall negative day on materials stocks so far today
will spend over $1b to service its customers. You also have recent acquisitions that will take awhile to monetize to the level of FB current valuations. FB will correct to these metrics not because FB is a bad company but because the SP is extreme on valuations and I still believe the hype is just that and adv will not be spending the way they are on FB forever. I just do not know when it happens, but it will happen.
worse for CLF is so minimal compared to the possibilities of substantial SP increase at this point and time.
They may or may not hate him. What WS will not do here is play with danger by adding to short positions. CLF is up 50% in the past few weeks and CLF has its business model going in a favorable direction. WS will respect this, because they will not let their portfolios get killed on issues of ego.
The prior management seemed to be in survival mode. This new team believes in a better result for the company is now managing the company for that outcome. On top of that, they (including the BOD) have personal stakes in CLF. At worst case they manage CLF to break even of $25 based on CAS initial stake in CLF. However, he did not initiate the takeover to break even.
Those reports trickle out. We get the next short interest report on November 11. I think we see more covering than we have in funds adding to existing positions or taking new stakes in CLF when the repostrs start filtering out.
accomplishments. I suppose soon enough this will not be ignored much longer by WS.
Areas that have been a drain on our cash and profitability are being addressed. We are implementing closure plans for the idled Wabush Mine, and eliminating functions, offices and activities contributing to high corporate overhead. Bloom Lake Mine has some of the best-quality iron ore in the world, with great DR-pellet potential. However, if we cannot secure equity partners required for Phase II infrastructure by year’s end, we will consider closure or other permanent options, as we will not continue to produce at Bloom Lake and sell at a loss in 2015 and beyond.
that time. Were it not for that, CLF was on pace to have an ugly volume day, which seems to imply WS not interested in covering or buying at this time.
I do not get my opinion from a book. I am stating facts and trends. The data is showing a slower China which will have a GDP twice that of ours but not 7.5% or more forever.
China already said they will not do more mini stimi to target growth. They tried that and it does not work. The growth they had in the past will not be the growth of their future.
these macro trends to not support larger growth in China either:
*Japan is a wreck and the QE plan they announced on Friday shows it and I wonder how well it will work?
*All of Europe is a massive mess, most likely hovering at recession levels, and its powerhouse, Germany, is declining in its growth as well.
*The IMF lowered global GDP three times of late and GS lowered ours in the US to 2.5% earlier this month.
*Several companies in the US announced plans of recent to pull manufacturing back into the US from China.
*Other counteries are becoming lower cost for manufacturing and its starting to move elsewhere.
*We have to see what our trend of growth is here in the US as well. Q1 negative print was on the bad weather. Q2 and Q3 was most likely catch-up. Average it all out andwe wtill have a 2% GDP economy. This qtr and next will confirm if we have an acutal 3% economy. I am not betting on it because if all the above continue to happen, that does impact our companies, our exports and imports.
If you read financial news daily (not someones book) you'll see these stories and trends happening in real-time.