Seems to me that if you have a huge naked short interest, CLF is close to a couple positive events, that these shorts would have a very itchy trigger finger. All CLF has to do is start buying back shares in a big way and thus telling the market these positive events are near. Then these shorts would start jumping off the ship and long investors would start piling on.
Also, you have to realize that LL is a retail outlet that deals with a value added product that is not impacted that much by moves in the commodities. CLF sells a value added product with a wide range of iron ore pellets. I know this, you know this, but the market in general does not. A media campaign is required to get this out and it isn't being done.
While CLF is not a retailer like LL, they are more like a Mowhawk that supplies retailers like LL with their value added product line.
What? Housing in the US is the largest user of commodities… Lumber being the largest. In building, more wood flooring is used than steel and construction accounts for 40% of steel sales in the US.
LL was and still is under a huge short attack with their Chinese flooring, I have been watching it ever since to see how they handled it. It has taken a little time but they are making some good moves to reverse the shorting of the company.
Come on, names, please! Or copies of these analyst's reports. Or are you just posting a typical short generalized post with no specifics? If so, just tell us that.
Watching LL, when they make a positive move in the company, they follow through with it in the media and it is starting to work for them in driving out the short interest.
CLF on the other hand had a successful bond offering and continuing to cut their debt. But all we get is just one PR statement out of the company. Where is the follow through? Absolutely nothing more! How about some presentation on how this purchase fits in their commitment to reduce debt and what to expect in the future.
Yes, thank you for posting this article on Mr. Correnti.
China does not honor most patents. CLF just needs to go into China and form a partnership with some iron ore producers, build the business and then sell it out to the Chinese. Massey did the same thing in developing the Chinese coal business and it worked out well for them. With China, it never is a long term business relationship.
China is very close to changing up the way they produce steel.
- China sits on the world's largest reserves of nat gas, they just need the technology and infrastructure to get it out to their market.
- China's pollution levels can't be allowed to continue.
- China has iron ore resources, they just need to be pelletized to meet quality and pollution standards.
- Nat gas finances will increase the need for DRI.
CLF needs to embrace this transition and work with the Chinese to convert their steel industry.
BHP and RIO know this is coming and are shipping as much of their low grade iron ore now rather than be stuck with it later.
The infrastructure build in China will absorb all the steel they can produce, reducing the amount of steel shipped to the US.
I have to disagree with Mr. Gonclaves on this one, according to trade data from the AISI report:
"Through the first seven months of 2015, the largest offshore suppliers were South Korea (3,345,000 NT, up 6% from the same period in 2014), Turkey (1,898,000 NT, up 73%) and China (1,770,000, down 1%)."
As you can see China is actually down for the first 7 months and Turkey is shipping more steel into the US than China. Really, Turkey? Well it appears our State Department sold the US steel producers down the river to get the right to use airbases in Turkey. Thank you Mr. Obama, put the cost on the backs of a few that did not vote for him. And of corse, the support we give to the South Korean economy and the bases we have in that region.
Over 10 days CLF's price has advanced, while the volume is low, the price movement is telling me that there must be more people on the buy side.
But I agree, there has been absolutely no news other than the results of the bond offering and the problem CLF did not work the results in the media. Oh well, I didn't expect they would and the volume is extremely low.
The coal mines will be sold, just that it is a buyer's market and I am sure they are asking for concessions across the board.
On BL, I am encouraged that it is taking so long to review the bids, means they have more than one! However, I sure would like to see an update from the CCAA.
vip, he would be crazy to post his address here, we all have yahoo email addresses that you can send private mail, just that very few of us read them...
If CLF did, they did it in pools that have a minimum impact on the daily trading. Needs to throw out a bunch of 100,000 share market orders and see how the market reacts.
It is clear with the current volumes, CLF is not buying back shares. On a low volume day, I would like to see CLF to buy 1 million shares and see how the market reacts. What is the harm? Not going to cost them a lot and it could be a great indication of what buying back shares will do.
So every once in a while we have some fun on this board to keep it some what light. But the absolute worse posting on this board are done by shorts and longs that post statements with absolutely nothing to back up their statements… what information do you have to support the reasons the shorts will be crushed?
Which leads to cooking chickens in China which leads to the increase demand for Woks which are made from steel and requires more iron ore. It won't be long and they will need to go back to iron ore…