crazy undervalued right here
Goldman Sachs has downgraded mining and natural resources company, Cliffs Natural Resources Inc(CLF) to a “Sell” on Tuesday.
The firm reported that they have downgraded CLF from “Neutral” to a “Sell,” and lowered their price target from $33 to $25. This price target suggests a 33% decline from the stock’s current price of $33.39.
An analyst from the firm noted, “we downgrade Cliffs to Sell with 29% downside to our new 6-month target price of $25. The announcement to delay its Bloom Lake expansion and curtail some US operations underscores that in a relatively weak iron ore market, high cost producers like Cliffs will be at greater disadvantage. Additionally, we anticipate lower production volume in Canada will translate into higher costs. While we expect a price rebound in 2013, we see prices falling thereafter, placing its expansion plans and dividends at risk. Longer term, new iron ore capacity is being added in North America, which has historically been a stable region for Cliffs.”
The gloom and doom sentiment by some analysts is to protect there short positions. Most Canadian retailers have said on local media stations not controlled by the US that the Z10 has been the top selling phone since it launched.
Canaccord Genuity analyst Mike Walkley is admitting today he went a little too far in drastically slashing his sales forecasts two weeks ago for the BlackBerry Z10.
Research In Motion Ltd.’s new BlackBerry 10 smartphones went on sale in the U.K. on Jan. 31. The device has since been introduced in Canada and some other global markets, but it won’t hit U.S. store shelves until about the middle of this month.
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Mr. Walkley was predicting sales of nearly two million devices until he dropped that forecast to just 300,000 on Feb. 19.
“Given our store surveys indicated modest Z10 sales in the U.K. and Canada with limited initial inventory levels, we admittedly reduced our February quarter sell-in estimates too low for the first month of the Z10 launch,” Mr. Walkley said in a research note today.
“With the Z10 launching in additional markets the last weeks of February, we have increased our February quarter BB10 smartphone sell-in estimate from 300K to 800K units,” he said.
But Mr. Walkley is hardly a bull when it comes to RIM and the new devices that are critical for its turnaround. He believes carrier support for BlackBerry 10 in the U.S. is modest, pointing to Sprint’s decision to launch only the Q10 device, and T-Mobile intentions to only to sell the Z10. RIM generally sells phones to carriers, who then sell the devices through their own retail chains.
“Our follow-up surveys have indicated steady but modest sales levels for the Z10. With new BB10 smartphones launching in the U.S. only in mid-March or later at subsidized prices no better than competing high-end Apple/Samsung smartphones, combined with our expectations for the Galaxy S IV to launch at a similar time frame in the U.S. market, we anticipate BlackBerry will struggle to reclaim high-end smartphone market share,” he said.
He believes sup
Hey dumb #$%$, there are more mobile phone users in India than the population of the United States.
Q1 earnings will be impacted with the "one time" write down from Venezuela devaluation. Combine that with a weaker N.A revenue stream will push this down to $10 for sure.
$41 would be painful for anyone who owns this over that, like the insiders TOMPKINS P KELLY, Gluski Andres, Michaud James R who all bought over $50 and $60.
Although it is not a good thesis to look at a chart, this downtrend is not sustainable. as it approaches $25 this should be a bottom unless the world stops using iron ore. The differential between ore prices and stock prices is crazy right now. Sooner or later common sense tells you either RIO or VALE will buy this just for the assets.
Cliffs Natural (CLF), which produces iron ore and coal, is climbing in early trading after JPMorgan analyst Michael Gambardella upgraded the stock to Overweight from Neutral in a note to investors earlier today. The company's stock has dropped 37% since mid-September 2012, even though seaborne spot iron ore prices have surged 53% since that time, according to the analyst. The gap between iron ore prices and Cliffs' stock price is now at its widest point on record, Gambardella added. Cliffs has lagged due to the disappointing performance of its Bloom Lake iron ore mine, but the stock currently reflects the negative ramifications of the mine, he believes. Cliffs' shares should climb going forward as their leverage to iron ore prices should be strong over the medium term, contended the analyst, who raised his target on the stock to $40 from $35.
Very pathetic I agree. All the other OSC posted positive per share earnings but not this turd. AND I don't care about top line revenue. The bottom line is what matters and these guys never deliver and do not have any confidence that they will. They cannot even be honest about the tax problems. They said they had it under control and close to having it fixed but yet now they say they are still working on it.
Like I said in an earlier post, word on the street about these guys is many managers don't care about anything other then the parachute they want to receive and the top guy doesn't seem to care cause he is no better.