CLF has NOT changed their corporate structure. When CLF management asked to vote on it, it failed twice. This is a big plus for CAS. What this means is that if you hold 500 shares of Cliff, you can spread 500 each to each of 10 Directors or can vote 5000 for just one Director. Thus CAS management doesn't have the muscles and since they have #$%$ off their shareholders, most will likely vote all for CAS nominated directors and they should get 6 seats on the Board easily.. Additionally CAS Management only owns 1% of outstanding shares and 41.27% shares are owned by Institutions like CAS, and 17.2% are owned by Mutual Funds. Most Institutions and Mutual funds likely will vote with CAS if it immediately BOOST CLF's stock price..IMO.
Wabush IO mining cost is $143/tonne and was idled in June of 2013 because of its high cost and ..Bloom Lake mining cost will be $80-90/tonne plus additional $25/tonne depreciation, depletion and amortization cost and it is still in Stage I development and the stage II expansion of BL suspended indefinitely.
US operations ave. cost is $65-$70/tonne
Aussie mines operation cost is expected to be $60-$65/tonne in 2014
Met Coals at current sales Vol is $87/tonne
CAS wants BL mine and Asia-Pacific assets spinned off since they are in direct competition with Seaborne
Iron Ore .
When the management is stupid and arrogant. For last 3 years they kept blaming on economy and lower IO price, but the truth is that they could had taken a number of steps to correct the situation including selling some assets but Carabba and Kirsch sat on their butts in their ivory tower corner offices and watched it lose 80% or more equity. Now they have an activist who wants to stir up the things and improve company's performance, they come up wih all kinda excuses including postponing the annual meeting. This thing is not gonna fly and NOT going away as shareholders are not going to put up with this S*** any longer. Bye Bbyeyooooooooo.. Kirsch and Halverson ( Halv is going to be a poor victim here).. your days are numbered. Some thing will happen over the weekend..IMO
That's what I thought too..mike.When there is an outsider coming to restructure the company, generally stock price gets bumped up. and NOT DOWN.
CLF now down over 3% just today. All those rascal executives s should be thrown out of the company.
Drapkin can't be any worse than those rouges Kirsch and Halverson who are on the mission to destroy CLF and its price going down down and more down is the proof.
This company has gone wild and crazy when they cancelled an annual meeting. Are they out of their minds? I hope CAS gets support of other big investors and do what is best in the interest of the company and shareholders. CLF is down more than 80% and the Chairman of BOD Kirsch and CEO Halverson don't even realize how badly CLF is messed up. Its even down to $18.58 today. God help us all!!
CLIFF postponed their annual meeting scheduled on May 13. You never can tell what this company is going to do. that BAD MNGT. Wish CAS can take the whole company around $32 and finish it up what they started an want to do.. I am sure if it came to the point that CAS may want to take this company private, most shareholders(over90%) will be with them and vote for it.
I am going for a ride with CLF.. and wait how this bloody thing gets finally resolved one way or another.
CAS, if succeed with putting their 6 directors on the CLF's Board, it can't be too far they will insist on firing Halverson and bringing their own CEO. That may make a whole new beginning for CLF and they will be forced to do what CAS wants.. ie.. spinning off Asia/Pac and other non -performing assets in another company and taking the domestic CLF in MLP. This will raise the stock price if not $53 but at least to$40....IMO
Oh Brother!!.. There is NO telling what this stock is going to do.. Just when you thought all the damage is done... here comes more ... What do SHORTS know that we don't?
I know there are 2 problems for CLF.
1. IO prices going lower and lower
2. Q-1 E est. are horrible.. ...minus $0.15 to mean $0.08 to high $0.41
CAS sent a letter to CLF to nominate their 6 persons on the Board and hope Cliff doesn't say...." NOT GONNA DO IT". Cliff up 7 cents to $19.17 in AH
I must say there are some SMART PEOPLE HERE on this board. Not going to name names but if MNGT listen to some of their ideas, they wouldn't be in the predicament they are now. The stock price would had been in at least in the upper $30's..IMO
It seems like CLF is in a Hot SEAT. Guys hold onto your shares and sit tight. Big rewards are just around the corner.
Really SURF.??? I hope you are right. That's what my friend at CLF told me that something gonnna happen shortly.