One thing is for sure CLF needs gross margins of 25%-30% for US IO sales for their survival.
Second, I hope they succeed in selling 2 remaining MET Coal mines and Get some cash out of Wabush and BL mines sale.. all this to use for reducing debt... Then we have hope for CLF to make it.
clf..I understand when there is an actual loss vs paper loss.. Hope we all recover in the end to some degree. I wish I never had ever heard of CLF. But How could I have Not.. I live in Cleveland area and know some people who work there.Any way we are all together in this.
LG should had used $100 mil for buyback of almost 40 mil shares instead Bonds and this baby would had been well over $3 today. Foolishness continues.
imagine.. sorry for your actual losses. I still remain optimistic about CLF's turnaround. What disturbed me most was their US IO Operations Gross margins being so low (15%) in Q-2. US IO is their best Division and they must improve their gross margins to 25% atleast to have sufficient CF for their expenses. Will see!!
sorry paper loss of $85K ( $11 -.$2.5 x10k)
imagine.. I am NOT here on Tuesdays and Thursdays in a week as I have taken up some consulting to supplement my income. At $11 ave.. share price of my 10K CLF shares , I have a paper loss of close to $95K. Deeply disappointed to see LG in my view has Not performed well to steer this company to prosperity.
Tariffs on Cheap Imports of steel and Infrastructure spending using US made commodities ..like steel, IO, zinc, copper cement etc. would be extremely helpful to lift up CLF's stock price.
imagine.. my views on CLF has changed a little bit after talking to someone familiar w/ CLF as I am in Cleveland and very disappointed. This stock is going to take a lot longer to report Operating earnings than I thought. They need to cut even more cost both in CapEx and SG&A. You cant do much about interest but its killing the share price. The Perception is that CLF may Not be able to pay down debt and its becoming reality and hurting the stock price. Also when their crown jewel US IO can only muster 15 % gross margins. . I hope I am wrong and they can go back to 25% gross margins. Its good that they are getting a big Tax refund in Q-3 and will cushion the Finances.
imagine . hope we hear soon on the sale of their 2 met Coal mines and BL/ Wabush resolution and hope they bring much needed cash to pay down the debt.. But what is Most shocking was the q-2 Gross margins on US
IO operations. I hope CEO and CFO are listening to us and reading some of these posts.
I think you are right . Its going to take a lot longer than anticipated. But some buyback would be great
Regardless the earnings were from the discontinued operations.. go read. Ok, the Tax Refund of $160 mil is for Q-3 QTR. sorry about that.
Neither yours. I have been here a lot longer than you been. LG can punish Shorts big time by buying back some even 20 mil shares as they will scramble to cover and he has the means . what is he waiting for? to go down under $2 or $1?
I say one thing for sure this stock is being manipulated by Shorts and Hedge Funds. LG is trying but not hard enough. SB IO price should not really affect US IO pellets but from CC, it has affected the US IO selling price significantly and the margins have eroded significantly. For CLF to survive , we need margins of $20-$30/ton.. NOT $11.55 or we are dead in the water . Hope Q-3 margins will be better. L:G needs to work on it.
hey bush... GAAP Q-2 earnings were $0.39/sh , mostly from discontinued operations and Tax Refund. On a continued Operations basis, CLF had a Q-2 LOSS of $0.21.. as simple as that. Stop twisting the things around
oht..It has nothing to do with being a nice guy. Its a mater of running a company. I learned when I worked that Bottom line is the most IMP and NO excuses. I am now Very critical of LG's MNGT though holding lot of shares and losing.
LG had a year now and he should had sold all non core assets son after he became CEO in stead waiting to get a right price . Now he is in a Limbo .He can still do it . Sale those discontinued Coal Mines for whatever the best price he can get . I still think APIO is barely profitable and 2 more years life and will be gone then. He needs to just concentrate on US IO operations with min Gross margins of 25%. and do some buyback while the share price is this Low.
surf.. sorry but your argument is a lame one. What does interest has to do with Gross margins. Interest expenses come out of EBITDA.
Gross Margins are simply Sale price of US IO / ton MINUS Cost of IO/ton operation . CLF needs them to be at least 25%-30% margins for US IO Operations on an on-going basis. Tax Refund based Earnings are fine but can only last for so long. CLF needs to make money before and after EBITDA.
If US IO sale price will be $78 then LG MUST reduce the Total Cost of US IO to as low aa $50-$55./MT. This is very IMP to maintain gross margins of 25%- 30% which CLF needs badly for US operations' operating gross margins.
CLF stock price is very manipulated but MNGT is of NO help. LG was supposed to be an efficiency expert and cut all COST drastically and sell all non-core operations . He has hardly done any of it. More the IO price fall more he needs to streamline operations.. NO matter what!!
If CLF is only going to have 5 mines in USA why they need $100 mil -$125 CapEx. They can get by with $60 mil CapEx. and they are only spending $5 mil for CapEx on APIO and Coal Operations are discontinued. ThEy can reduce CapEx by atleast $50 mil. and if Coal mines may Be in the process of sale why so much $125 mil in SG &A expenses. They can get by with $75mil . THAT IS A TOTAL REDUCTION OF SOME $100 MIL IN CAPEX AND SG&A EXPENSES. CLF needs to do this .. No Questions about it.
Lets continue the debate.. any new ideas???.