You should do some research! A lot of there US trade will get reset over the next few years to the seaborne spot . They also have increasing competition in the Great Lakes from newer, more modern mines! To say CLF is not impacted by low ore prices speaks to your complete naivety of there business ! I'm long but very hedged, as I expect hi beta moves to continue, but am not blind to the headwinds they face in iron and coal! I'm shocked they kept the dividend and do not feel its the best use of capital at this time as there earnings will be under pressure for some time.
Temper the excitement , $51 million in non-recurring intellectual property licensing revenue! Nevertheless steady progress, nice liquidity, cheap stock!
congrats on buying that the dip. A 7 point recovery! The trading is very very suspicious to me. Every dip is being bought, and the non investment grade bonds are trading at par. In a market where illiquid stocks have been crushed,( PNX qualifies and then some), something has to be out there. Perhaps the rumored buyout is on its way, or some capital management is pending. Something is going on imo.
who are you to tell anyone to go away? Phoenix has been a very good deal for those that bought at the lows. The stock went to penny stock land, loosing most of its value. It became an attractive trade for vulture investors. That would not have happened if every thing was roses. That goes without saying!! I buy distressed assets for a living. Your arrogant and ignorant..a bad combination. Don't ever respond to me again!
You must be ignorant. This very, very illiquid stock went up on heavy volume in one of the worst days for small cap stocks in a long long time. Small stocks are getting crushed, and that's being conservative. The bonds are also very strong. Are you paying attention or just plain bitter. Did you sell at 20? You and fish lady have been preaching your doom and gloom thru a 200% rise in share price. If Ebola goes epidemic here, all stocks will fall apart. It wont matter.
Not calling a bottom by any means, but its bounced hard 3 times to run from a 6 handle . It was flat today on very bad tape . If I was short big, I might just move on to the NAS 100 stocks and the Russell! Lots of overpriced fresh meat for pro short sellers and Cliff is attracting some value investors, and there ain't much meat left on this bone, unless your playing for zero. risk/reward just is nothing great at 7 if you short with nice gains.
John W. Miller
Updated Oct. 8, 2014 3:12 p.m. ET
Under fire as his company’s stock plummets, the chief executive of Cliffs Natural Resources, Inc. said that despite continuing talks to sell some mines at home and abroad, he isn’t under any deadline to sell noncore assets and urges patience.
“There’s no ticking clock,” said Lourenco Goncalves, whose company’s share price has fallen by more than half since he took over in August.
S&P has lowered the Cleveland-based miner’s credit rating to BB- from BBB- with a negative outlook, mostly because of falling iron ore prices. “They’re predicting the past,” referring to Cliffs’ poor performance in the recent few years, Mr. Goncalves said of the rating firm. Of the stock-price decline, he said, “I haven’t sold a share,” adding, “I can’t control stupidity” in the market.
Cliffs, one of the worst performers on the S&P 500 index in the past two years, has been hurt by declining iron-ore prices, which have fallen over 40% this year, due to oversupply and slumping Chinese demand. Cliffs suffered a net loss of $1.9 million in the second quarter of 2014, versus a $133.1 million profit over the same period a year ago. Its revenue dropped 26%.
Cliffs isn’t alone in being hit by falling iron ore prices. The iron-ore industry is on the verge of a potentially massive shake-up. Rio Tinto Group, one of the world’s top three producers, disclosed this week that it had received a takeover offer this past summer from Glencore GLNCY -4.26% PLC. Such an offer is expected to become attractive to Rio Tinto shareholders if iron ore prices fall further and the company’s financial performance slackens.
Mr. Goncalves, who took over as CEO of Cliffs in August after a board coup forced by activist shareholder fund Casablanca Capital LP, said he was “doing a lot of blocking and tackling” and predicted “the results will come.”
You all know CLIFFS made a 9 billion bid for ANR in 2008. They even kept the name! ANR is now is a penny stock at 2/sh with a market cap under 500 mill. That is why institutional investors sided with CASA and ousted the board responsible for a horrific string of acquisitions that have Cliff fighting for its life. The coal stocks are now a pile of ruble. How Cliff will deal with its coal assets is beyond me. They could end up giving them away just to save the cash burn, as other have done.
You all need to read some of the interviews that these 2 CEO are giving! They are literally waging a battle with each and it's gotten personal! Even the Aussie prime minister has scolded them as well as some large shareholders. They have already put about 30 Chinese mines out of work! Your attacks on the shorts make no sense to me. They made a great trade. Your anger should be aimed at the these enormous miners and there predatory mission. Iron would be at 125 IMO if the bigs were not engaged in this deliberate strategy! And Cliffs would of been just fine .
Relax man, have a cold one, Its the stock market. Markets go to extremes. CLF is in a bear market, it will go to an extreme valuation. It will create a nice opportunity to buy the best ore company in America when they get around to there stated business plan. In the meantime, don't fight the tape.
Major iron producers like Rio Tinto are engaged in what could be a dangerous game of supply brinkmanship.
Rio and others seem to assume that the destruction of high-cost competition can be surgically executed without collateral damage to the entire industry and themselves.
I see parallels to the attitudes in the financial industry in 2007 that make me what to remain short Rio Tinto until severe market imbalances show sign of change.
"When the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you've got to get up and dance. We're still dancing." - Chuck Prince, CEO of Citigroup (NYSE:C), July, 2007
"Regardless of what the price is, we will be the last one standing." - Sam Walsh, CEO of Rio Tinto (NYSE:RIO), October, 2014, referring to RIO's ability to outlast the on-going collapse in the price of iron ore.
Almost any piece these days discussing the price of iron ore refers to the growing supply gut caused by major iron ore miners who continue to produce and ship as much of the commodity as they can despite falling prices. Rio Tinto (RIO) and BHP Billiton Limited (NYSE:BHP) are the main culprits as they take advantage of their low cost structure to push higher-cost competitors over the edge and out of the iron ore business. These practices almost seem predatory and akin to "supply dumping" except the price of the product remains above the price of production for RIO and BHP.
I have yet to see anyone wonder about scenarios other than the carefully planned and executed destruction of most of RIO and BHP's competition. What if instead of RIO and BHP managing the market into a near duopoly (Vale SA of Brazil should also be a major survivor of the iron ore carnage), what if the spiraling downward of the industry is actually a path to mutually assured destruction? What if the Chinese, already well-aware of the game RIO and BHP are trying to play, decide to funnel as much cash as needed into money-lo
OPECs base strategy has always been to control the supply/demand balance. And there real good at it. Not to flood the market with unlimited cheap oil. Tweak there strategy they do, but the only thing they will learn from those iron idiots, playing Russian roulette, is how to destroy the market that serves you.
on how to make unlimited money in the commodities business. I'm sure there strategy will get a few laughs by the sheiks at the next roundtable. OPEC would have already cut production 40%.
if in fact the stock buyback is real, and I'm not convinced they have the financial strength to do much, the buyback will have a meaningful impact to longer term investors buying back shares in the low to mid single digits. Highly accretive to book and eps, if and when the business turns around. Short term is a bust.
everyone of those things are out there and accelerated the decline imo. CLFs base institutional investors and bondholders have been completely spooked by these initiatives to be sure vs a hunker down ultra conservative survival plan at this time.
on 30-40 million traded and then a fundamental event that gives some clarity on a survival plan in the next few weeks! Weak ore and coal prices with complete uncertainty and confusion on a long term plan has everyone running for the door, obviously.