China is jumping with economic stimulus ..and Japan, Europe and India are not far behind.. The growth will stimulate commodities and their prices and eventually the stocks like CLF, Rio and Vale.
CLF will trade in a very narrow range like $23 to $27 until Q-4 earnings are out and guidance from the new CEO.
I totally agree ..Skitt. CLF MUST focus on developing the Boom Lake Mine and hold off on the Ring of Fire Chromite. Its a money pit and there is no point in throwing good money until CLF can find Equity partners who will commit to invest money in the development of Chromite stuff. With Ring of Fire Chromite on hold indefinitely, we should see Earnings go up rapidly and I think Q-4 earnings may be well over a $1.00 (est. is $o.76) since China's steel production is expanding and IO around $137/tonne. We should see CLF stock price move up close to $30 after Q-4 earnings are announced. Good Luck to all the longs!!
W999..I hope you are , but I think CLF made a right decision to suspend the Chromite project and stop BLEEDING until the transportation system is developed. THIS SHOULD HELP CLF IMPROVE THE BOTTOM LINE AND KICK THE STOCK PRICE UP FINALLY. I think this is the decision made by the new incoming CEO along with the present management.
Probably the best decision CLF management made in the light of Canadian Gov. not willing to establish the Transportation infrastructure .Cliff also suspended the environmental assessment activities . This should save Cliff a ton of Money. Stock was up $0.16 in AH. I would think now that the decision is made, it will have a lot of cash left to reduce the debt and increase the dividend. Its a win win situation for stock holders and I would expect the stock will get over $30 by next spring.
CLF is a $25-$30 range stock. If it can't make a move out of $30 while DJ is above 16000 and IO price is around $135, I don't know when it will. Have a Happy Thanksgiving all!!
I agree with you skittle. The new CEO is going to move differently , I believe , and will focus more on Bloom Lake and put a hold on Chromite project indefinitely until they can find a right equity partner or can get a good price to sell it. I hope the new CEO acts such that CLF stock price movement is NOT SO erratic and brings more stability by providing consistency in earnings, and lowers debt further.
Take over is an old story...not gonna happen. CLF does its own thing and MGT has no idea whats going on. Hope the new CEO is investors' pro-active and tries to enhance shareholder value. Getting tired of this stock going back and forth between $23 and $27 .
W999.. Who would want to sink money in this " IFFY Chromite Project". CLF would have hard time finding a joint venture partner.
By shelving this project , CLF can better spend money in developing the Bloom Lake iron Ore mine and returns will be much better. CLF said they can make 14%-17% return on Ferrochrome if the price is $1.40 per Lb. China 's Chromite Conc. price currently is $390/tonne and not enough for good return. Also Ferrochrome prices has ranged from $0.70 to $1.30 per Lb. from 2005 to 2013 and is projected to reach $1.40 by 2020.. not good enough for billions of dollars investment ..imo.
CLF again under $25.. gets NO respect.
CLF bought Ring of Fire Area Mine for Chromite development for $229Mil US ($ 240Mil Can) in 2010 and spent $500 mil already in the development of Chromite Project which they finally got sense and stopped the bleeding. It needs a major infrastructure development for transportation and CANADIAN GOV balked to develop it until now when CLF announced to stop the development. Even if The transportation (roads etc.) is finally done, CLF MUST think hard and fast if they want to plough into this development. It will cost some
$3B plus for his Chromite project and CLF 's whole market value is under $4 B and if something went wrong the whole company can get wiped out. They will need a major financial support from other equity partners. This Mine cost was only $229 Mil and if they sell it, probably get $1.5 B at least and that can boost up their stock price as well as capitalization and Cash Flow drastically to do other stuff or even any potential acquisitions. Also the Chromite project itself is a big gamble and there is no way to know the payoff. I know the persons like W999 here will strongly disagree with me but the COMMON SENSE needs to prevail. Only sensible responses please!!
char.. FYI.. CLF stock price is under $26.50. This gets NO respects no matter what you guys say here.and its not CNBC's fault.. Short sellers know very well how to make a play in this stock.
Skit.. I want to be positive as much as I can and I have No problem as I am making money . But the fact remains that this stock can not be trusted in its price movement , and just when you thought the great earnings, low debt and high IO prices will make it to move higher, it disappoints investors terribly.
Here we go again.. Back under $26.5 now . This stock can't be trusted for a sustained move no matter Dow is up or down. CLF does its own thing and as stated before it has one of the LOWEST Price Stability for all S&P 500 stocks.