this is an interesting point. The steel companies want guaranteed low pricing and to get that they must accept minimum volumes requirements from CLF. So when iron ore went through the roof, the steel companies did great by getting low prices. Now, when demand for steel is a bit weak, the steel companies do not want to honor their volume commitments. That is a total joke. CLF might as well sell its iron ore pellets on the spot market. It makes no sense to get locked into a low price when things are good and spot prices are up, only to get hosed by not getting minimum contracted volumes when things are a bit slack. This is a heads I win, tails you lose approach from the steel companies. The CLF CEO is going to take care of this situation real fast.
short pumper ohtaegun is such a loser. He never has anything to say of any interest. Yesterday we have this interesting news re Essar and the moron can not make a single comment about it, good or bad. Just goes to show what everyone is dealing with here with this clown. He is just totally pathetic.
They way I see it.....
1. Essar is not taking the volumes in contracted for and they still want the lower contractual (versus spot) pricing. This is not going to happen on pricing clearly.
2. CLF ceases shipments to Essar and CLF revenues decline.
3. Essar is granted an injunction and CLF resumes shipments at the contracted price.
4. CLF continues with its lawsuit and is awarded nothing or CLF wins the case and collects damages from Essar for Essar's failure to meet the contracted minimum volume purchases.
5. Essar tries to find alternative pellet supply but has to pay through the nose for those pellets as no market participant can match CLF's prices and volumes.
6. Essar tries to find alternative pellet suppliers but fails. If Essar does not negotiate with CLF for new supply (either under spot pricing or under some new contract), Essar will have to close its steel plant or dramatically cut back on production.
7. If there is some agreement between the parties, CLF resumes its shipments to Essar at much improved pricing.
All of that said, CLF has already been shipping Essar pellets at below market rates with below contracted volumes for some time. That time has now ended.
Looks like Essar was not purchasing the required minimum contractual volumes and for the volumes they were ordering, they were getting the lower contractual prices as if they had ordered larger volumes. That is totally bogus on Essar's part. It doesn't work that way. You get the lower price if you buy the minimum volume. If you do not buy the minimum volume, the deal is off and you have to pay the spot rate or renegotiate the contract for lower volumes at higher prices. CLF offers lower pricing for the higher contractual volumes as it is economies of scale for CLF and they pass the cost benefit through to the customer. There must be some interesting conversations going on at Essar right now - like "Where do we get pellets"? "Do we have to shut down production?" And so on.
The news from CLF reads as follows: "Cliffs' decision was made as a result of Essar Algoma's multiple and material breaches under the agreement."
SO CFL says that there were multiple and material breaches. I wonder what these were. Some things that come to mind are..
1. Failure of Essar to take contracted for minimum volumes of pellets.
2. Failure of Essar to pay for pellets on a timely basis.
3. Combination of both 1 and 2 above.
4. Failure to provide CLF with contractual projected purchase volumes for the upcoming quarter or month.
It is interesting that Essar has sued for an injunction against CLF in terminating the contract and basically from stopping shipments to Essar. Clearly, Essar needs the pellets and wants to keep the pellets coming in from CLF. If Essar does not get the pellets, it does not look good for their steel production. How do you run a steel mill facility with no pellets? But if Essar is not taking contractual minimum volumes and/or not paying for them at the time or in the dollar amount that their contract requires, Essar will not win an injunction (unless there is some contractual arbitration clause in the supply contract). Who knows.
I also saw that CLF indicated that it would provide Essar with pellets on a just in time basis at spot prices. This is an interesting comment. Maybe some of the comments from the two companies is just positioning themselves publicly given the current state of affairs. I find it hard to believe that CLF would just make up some bogus reasons why Essar has breached the pellet supply contract.
The loser oht never dares show his face here on an up day in CLF shares. Stock was $2.35 on Thursday and he claimed ever so boldly that the shares were now going straight to $1. What a moron. Here we are in 2 days with the stock up 28%. What a short pumper this clown is - hilarious.
ohtaegun is the most pathetic short pumper of all time. The clown posts junk endlessly based on his reading of the "charts". What a fool. On Thursday the idiot was stating as a fact that if CLF printed (not closed at, but printed) a trade at $2.35, it would collapse right away to $2 and then $1. The $2.35 print hit and the stock has done nothing but go up $0.50 to $2.85. That is a +20% move in two days. What a frigging moron.
CLF has most certainly broken the downtrend line. It has down it twice. And if anyone followed the downtrend line and extrapolated it, the stock would have been zero a long time ago.
The best is that with oht's logic, the CLF share price should have been a -$15 about a year ago. Never seen such a self promoting short sale pumper in my life with zero business knowledge or added value. Looking at a chart in Not added value. That is why there are zero inverting people who have made big money following charts. None of the super smart business men in the world do it. Show me one who is on the list of wealthiest people in the US or the world for that matter.
Let's face it, you are a complete clown on this chat board and everyone knows it. All this blabber how you have been short since the $20's. Where were you at $110? And then when share run you blab about getting long. It is just so pathetic. Absolutely no thought or intelligence. Just go stare at your charts. You will make more money writing a book about that stuff than you will trading any stocks. You are the type of idiot that buys GPRO, BABA, WYNN, GMCR and all the other hot stocks at the top just because the chart shows that they are "going up". Pathetic.
oht is beyond lame. yesterday the moron was pontificating that CLF shares, once they hit $2.35 intraday, would collapse to $2 right away. His mighty charts said so. This tube is so lame. There is no one ever who has made any serious money trading charts. It just does not work. That is why people write books about it - because if you can not make money trading off the charts, you might as well write a book about chart reading and make money from publishing. Why would you ever write a book about something that you found out was a recipe for large trading profits? You wouldn't write the book. You would just trade and make tons of money, keeping your secrets to yourself. Alas, oht is just a pathetic huckster, pumping his short position with some ridiculous commentary.
oht is a joke. The guy has no idea what he is doing as an investor. Reading a chart is not a viable investment strategy or approach.
you are useless. Instead of asking the question for everyone else to do the fundamental investment work that you yourself should be doing, I suggest that you find out...
1. What coal subsidiaries did Vale and BHP sell?
2. When were they sold at at what price?
3. Where are the mines sold located?
4. What were the total mineral reserves at these mines?
5. At what price were they sold?
6. Do the sales include any special features, like installment payments over time?
7. How do these compare to CLF's coal mines?
8. Based on the above, what do you think CLF's coal mines are worth?
9. And so on.
Stop being a total twerp and tool. Do something constructive with your time. You a such a nag. Awful. No wonder why everyone finds you annoying.
I was reading the ridiculous posts from oht yesterday. What a waste of time. The guy is a complete idiot. Who would ever trust this clown with anything he says. Yesterday he boasts that if CLF shares trade at $2.35, it is all over for the stock and that it will collapse straight to $1 with no bounce. I have yet to read a post from this dope regarding any fundamental development in CLF or the industry. I guess he just stares at charts all day and we all know how many people have made fortunes from doing that - none. There is not one person I have ever read about that made any significant money using that approach over time. Who even knows who this clown oht is. Why would anyone listen to some dope that they do not know that invests by looking at charts? He is probably still short Apple Computer from when it was 90 days from bankruptcy.
vip is a twerp and a nag. It is pretty simple. He is worse than a nagging housewife who complains about everything without thinking. He just looks at the stock price and blames it on the company. The company did not sell the shares to drive the stock price down. The company has been doing all the right things to reorganize and get back on its feet. But it does not matter, vip will complain until the share price goes up. That is what a nag does.
Forget about that. Much better is that Nucor signs a deal to joint venture with CLF on DRI pellets. That would be a significant event.
Why do you trust what anyone says here on this chat board or in the news? Do you think for one second that I trust anything you say? I don't even know who you are or any of these other clowns on this chat board are. None of them are to be trusted per se. And nor should you trust me. Some do have reasonable insights on industry and company fundamentals, but I always do my own work to verify and then always draw my own conclusions.
The posters on this chat boards predicting with 100% certainty that CLF shares will trade at one price or another on any particular day, week, or month are idiots simply pumping their own positions by trying to influence morons that are unable to think for themselves.