With healthy price appreciation potential
CLF.. Timeliness..2( 1 best, 3 Ave., 5 worst)
Safety............3 ( 1 best, 3 Ave., 5 worst)
3 to 5 year Growth Potential.... 140%
Lets see if it will follow up and CAS help do it
pan ..you are right . Shorts have this company by the tail and know how to trade it. But the situation can be turned around by the management with the help of Hedge funds and other boys that have stake in this company. This company's management needs to be proactive and open to shareholders and WS and tell how it is going to change the culture and the structure. They MUST shed non-core assets, cut cost drastically, prioritize domestic business, increase dividend, raise QTRLY earnings and lower the debt and be more visible. These will be the steps to take the company in a right direction and put it on a solid footing and the stock will take care of itself..IMO
divine. .Carnage on CLF is way overdone. This stock is not as bad as it is thought of. The problem is the management. They are not proactive and don't know what need to be done.. CAS has some great ideas but its up to CLF MNGT to act on some of them if Not all. In the meantime shorts are having a lot of fun for last 2 years. But this company is NOT going bankrupt. It will come back...May be it may be a hostile take over or the new CEO finally turns it around.
Pcln ( priceline) hit $5 in late 2008- early2009 and now it is at over $1000. JC Penney and Abercrombie, both are coming back too and many others have come back in the past So one must have patience and I think CLF will be around $30 in late 2014.
Surf..I agree with you but its a matter of perception. Analysts and bankers look at how small CLF is and then they see the doom and gloom INT stuff like "Ring of Fire" Chromite project being idle and BL mine only producing limited amount of Iron Ore and other Asia/Pac assets doing poorly and then China's GDP. All this adds up eventhough CLF has very little exposure to China and its economy.
Also the management has not made a good case of domestic operations bringing in a lot s of Cash Flow. All this is a perception issue and they need to do wellby being open and pointing out to WS or they will be in trouble with thier stock price which is down very unreasonable from the high of $102 in 2011.
oops ..Rio's Iron Ore production cost $40/ton. How can they lose even if IO goes down to $ 100 or even $80.
News about BHP and Rio from Barron's..
BHP to cut $4.9 B in volume and cost efficiencies
BHP profits up 32% in 1st half(July-Dec)
BHP stock @$69.25 down 10% from High($55.66-$75.53 range)
BHP to cut Cap Spending from $24B to $15B
Rio profits up 44%in July-Dec period
Rio stock @$57.31..down 5% from high($39.14-$60.61 range)..target price $80
Rio to cut Cap Spending from $18B to $11B
Rio's IO production cost only $40/40n.. can still make a lot of money when IO price is even under $120
Both BHP and Rio are successful in slashing cost, reining in their Cap spending and driving volumes where growth demand is still healthy.
How does CLF can compete internationally with these big boys? CLF must concentrate on domestic operations and sell non-core mostly INT assets..IMO.
SURF.. One said all employees told not to make any statements and another said something big likely to happen but he can not elaborate.
Stock is down today @ $21. 20
surf.. sorry!! I today, I was out most of the day and didn't get hold of ether of two guys earlier. I will try to contact them this evening and will see what I find out.
Trying to figure out here. Finally I believe this stock is NOT for investment., Its for back and forth selling and buying ..most selling though. I did do well by writing Calls and Puts but would had done even better by outright selling stock on and off.
How can a stock go down 2%,3% ,or 4% day after day and survive? How can management remain so callus and arrogant w/o making any statement.
I give up. I just don't understand why this stock is doing what it is doing, except the Shorts are in control and MNGT is truly PATHATIC and not proactive.
Yea.. but this is not JCP or Blackberry stock with lots of losses. CLF has $3/sh earnings, attractive assets etc. Even debt is not that bad and gives dividend. Don't know why it must get down to $15-$17 area? Its all management's fault being so silent even in the light of a possible threat from CAS.