Because its business is deteriorating so I had to sell my stake in this stock. I lost a quite lot. I just wish it will come back and be good again in the future.
So far the new board has had all the wrong steps, $200 million share buyback, attempted fire sale of assets, complete shut down of bloom lake which is actually a jewel but buried very deep. etc. It is shareholders fault it eventually goes under.
It is constantly chasing the seemingly high margin business. It has lost strategic direction and forgot what they really want to do or capable of doing. High margin business is often a short term phenomenon. When everyone is doing that, it will soon become a low margin business.
Just read an article about how IBM spent its money and loaded debt to buyback shares and payout dividend in order to please its shareholders such as Warren Buffett. Because of this, IBM is charging as much as possible from customers and squeezing expense as much as possible to show a big profit. In the end, customers are fleeing, employee morale is deteriorating. Business goes down spirally.
During this time of crisis, the more you do the worse you get. The original board of director were already in the very conservative mode. They tried to save every penny they can. Now the new board is a devil. Spend $200 million to buy their inflated own stock which can go well below $5. fire-sell depressed assets, and try to maneuver other financial tricks which destine to even more disasters. It is all shareholder's holder fault who elected them.
I remember that 5 years ago in the great recession, pir was desperately reducing its debt level not even as high as today. Now they are relentlessly accumulating debt under the same management. Are they learning the lesson ?
I stop listening to Cramer who is basically a clueless big mouth, Motley, Zach, Goldman Sach, etc. a quite while ago.
is that they are not making products quick enough. they have a mentality of having to make a genius product. they are afraid to fail. they are not dynamic which is fundamental character for a great company. Samsung often from time to time to make lousy products but they change quick and move on to the next one. their products are more diversified.
It took them three years to figure out this lousy Apply Watch. unbelievable. Even a small tech company can do this in just a few months and quality would not much worse than theirs. and the price would be just a fraction of theirs, say, 30 bucks.
Buffet will never buy BKW common stock. he only buys preferred shares which probably you and I can not buy it at 9% interest rate. He only bets on something that surely gives him nice return and no loss.
This just does not make sense at all. Buffett is a truly very nice vulture !!!
Frankly speaking, the old management already started a very conservative and right recovery path for clf. I just hope that new management will not do some crazy things that is so called create values for shareholders in short term but destroy the company in the long term.
CFO is only 58. see the link. http://investing.businessweek.com/research/stocks/people/person.asp?personId=768246&ticker=RAD