mye...may be you are right. I am losing my faith in LG now. He needs to cut CapEx further from $100 mil to $60 mil as Coal Mines are NOT on P&L anymore and announce where he stands on their sale.Also he shut down one of the 3 APIO mines and life of remaining mines is only 3 1/2 yrs so he can reduce Its CapEx from $10 mil to $5 for thier life.. So Only US IO mines require CapEx and he can manage it by $50mil-$55 mil. All this may also cut SG&A from $120 mil to well under $100 mil . He needs to STOP paying Pref.Dividend which will save $52 mil.
Finally its time to use his loaded gun by his bedside and spend $100mil-$200 mil for buyback of common stocks. This will RESTORE FAITH in the company and immediately drive away most Shorts for Cover. and stock can easily hit to $7-$8 area. This is the BEST MONEY he can spend at this low low price. It can immediately raise MKT Cap By $300 mil. Many companies buyback to show shareholders and WS the MNGT's confidence in the Company This Money can come from further savings of CapEx and SG&A and pref Divy elimination. So simple . IT doesn't take a rocket Scientist. And BTW, they can eliminate most of their IR Dept. They don't respond anyway.
surf..when would we know about BL bids or letters of Intent of bids?Any info? Shouldn't we know by today.. or even now?
matt..I agree with you. LG is losing his credibility and NO whatsoever respect for him by analysts and WS as a whole . He needs to sell 2 MET Coal Mines and Get out ASAP. He needs to give us more transpeaancy on BL BK, Reducing the debt, stock Buybacks and Enhancing US IO business.
Not making to the meeting.. some emergency came over last evening and out of town now. CLF still tanking.. see you later . Longs.. be strong.
surf.. I want to agree with your rosy picture but why WS and Analysts Not thinking that way??? We will know soon by tomorrow the fate of BL as letters of Intent to buy or actual buy bids may be disclosed. Anyway CLF down big today and so I don't expect much good news out of BL . Reality or perception.. Debt is the biggest issue for CLF and LG needs to answer in a way it makes sense to WS or his every QTR's good earnings and beating estimates are NOT producing any results.
The BIG question that needs to be raised at SH meeting is that How to bring Debt to Mkt Cap ratio in line ie around 2X. Only way I can think of is if CLF buybacks $100mil-$200mil worth Common shares, It will immediately cause Shorts to scramble for the COVER , cut the number of Outstanding shares drastically and lift CLF's stock price to as high as $8 and bring Debt / Mkt Cap to 2X( $2.5B/$1.25B). This is the BEST possible Sceneario except to sell the assets and lower the debt..
Aussie PM Abbott to support the Parliament's inquiry into IO probe of big miners driving down the IO price to shut down Smaller miners. Mr. Forest , Chief of Fortescue Metal almost accusing of BHP and Rio of manipulating IO price.. pushing it down by increasing the suppy to get rid off smaller competitors and then raise the price. of the commodity. BHP down over 6% and CLF down over 5%in sympathy.
Is that your answer to everyone? go away . you are becoming an idiot more and more like
surf.. for some reason. WS , Analysts and big time Shorts know something that we don't know about the debt or they would not be shorting on great 3 QTRs performance by LG. Its all related to DEBT and LG has been slow to move on it and NOT making a better case in the Media.
Based on one mine they sold for $175 mil .. 2 more to go. This guy LG when he was a CEO of Metals Co, took the stock from $3 to $23 when he left. He will do the same for CLF. He wants badly out of being associated with SB IO price and expand more and morei of USIO business. here.
LG is working hard to undo the stupidity of previous MNGT which piled up a huge debt by buying Consolidated Thompson ECan Mines for $4.9B. It takes time and he has already reduced debt from $3.3B to $2.5 B now. The sale of 2 remaining MET mines is imminent and that along with BL BK resolution may reduce well under $2 B. Analysts have [raised LG during the C but then they bash him all because of debt but it takes time.
He should had sold APIO last year when SB IO was around $80 but its still profitable and SB Io price has rebounded to $62 and will move higher. APIO mines as a life of only 3 1/2 yrs remaining So its OK. On a bright side, He had produced earnings for last 3 QTRs since taking over as CEO and WS somehow doesn,t seem to get it. and only thing they look at is the debt. He has cut SG&A and CapEx drastically by over 75% and more will be cut as those coal mines are sold and they are not a part of P&L now. Analyst praise him in the CC and then bash him . which I don't get it.
I would like to see him spend some $100 mil of the $200 mil allocated by the Board to buyback some 20mil common shares . That will drive out a lot of Shorts and Significantly improve the Mkt Cap of the company as stock may shot up 2 points. Regardless I see LG producing earnings of
$0.30-$0.40 /sh for Q-2 .
NO. The word is that the number may be around $ 300-$400 mil for both MET Coal mines. 15 to 20 year life span for a mine is considered to be adequate and we may hopefully hear something on this coal mines' sale in the meeting.
WS and Analysts are very worried that CLF may NOT be able to pay off debt when due in 2018 and may have to refinance it at much higher interest rate and the current interest is about $200 mil annually. They MUST MUST Sell Coal assets and Lower the debt and Hopefully BL resolution will bring some $300mil-$500 mil cash to CLF after all is said and done. They need to lower the debt to under $2.0B soon and then every QTR pay off $100 mil at least. That is $400 mil/year and pay off entire remaining debt in 5 years . If this plan works , then CLF stock price will zoom in $25-$40 range based on if earnings amount to $2-$4 per share..IMO
Here are the meeting Agenda:
Approval of the Election of Board Directors Nominees
Approval of Cliffs 2015 Equity & Incentive Compensation Plan
Approval of Cliffs 2015 Employee Stock Purchase plan
Approval of Executive Officer Compensation
Ratification of the Appointment of Deloitte&Touche LLP as an Independent Accounting Firm for CLF
Plus answering any Questions that Shareholders may have.
matt...come to the SH meeting and ask him that question. Here is your opportunity, AND SEE WHAT HE SAYS.
surf..In the end its the stock price and stock price determines the Mkt Cap. Why are you investing in stock market? The reason is for the stock to go up. If LG buys some 20 mil shares with $200 mil that the Board had allocated , this stock will be jumping up as Shorts will scramble to cover. Other companies have done this to drive out the shorts and have succeeded.
surf.. that is so preposterous to think that LG doesn't want the stock to go up.Stocks Mkt Cap is the heart of the Company. I don't believe it. He can use only $100 mil to buy back shares and CLF stock will jump up $1-$2 or more.