Bob, anyone that thinks Yahoo posters can lure people to take long or short positions it just totally off base and really thinks their opinions can influence markets. Instead of making baseless comments, try posting some reasoning that we can have a discussion on.
I am waiting for word on the settlement of BL. In the past, CLF would not take $750 million for the mine because their liabilities were $750 million, but now their liabilities are zero. Now they are free to take $750 million or more. On the other side, a buyer of the mine is going to get financial concessions from Quebec and the unions to drive down their acquisition price. My only question is will CLF get cash for the real estate they own or will they just lease the mineral rights to the new operator?
Company insiders have about a 3 week period after earnings are announced to trade. LG made his purchase close to the end of that period.
I think we have a better chance that one of the major iron ore producers will buy out CLF. The writing is on the wall that the iron ore business is moving to a structure where local suppliers control their market and value added pellets is going to replace fines. My thought is that VALE will buy out CLF at a price based on USIO earnings of $2 a year times 12 which makes the purchase price $24.
Tony, CLF is currently in their blackout period and company insiders can't take long or short positions. And lawsuits, you would be better off trying to sue the Fed for maintaining a strong dollar.
Jeff, I have people that can find information on anyone that post here, you want me to look into it?
With their total credit line available, there is no need to keep $400 million. Plus, they can buy back bonds and hold them, if they need cash, they can always sell them back into the market. Liquidity is not a problem for CLF.
CLF's balance sheet is skewed with all the major impairment charges. The IRS allows you to reduce the value of assets on the balance sheet, they don't allow you to increase them and CLF's US asset value is low due to acquisition cost on the books.
Look at their income statement and the amount of cash that is coming into the company. Their tax refunds from the impairment charges and assets sold below book value is significant and be used to buy back bonds at a good discount. Also the amount of cash that is coming in from USIO and APIO that can also be used to pay down debt at a fair rate. Without a sale of an asset, at the end of Q1 I expect their net debt (debt minus cash on hand) will be below $2 billion.
On a 50 share trade outside the bid ask, really! We just had a 60 share trade at $4.54 outside the bid ask. Neither one of them tell you a thing!
Exactly, RIO would have cost of $65 a ton to pelletize and ship this ore to the US market which is above CLF's cost of $53 a ton. CLF is really the lowest cost producer. And CLF's APIO cash cost is in line with the lowest cost producers.
As I have said many times before, mining iron ore dirt at these prices is not a good business, but providing a value added product from this dirt is! And CLF's low cost US iron ore mines allow them to pelletize iron ore and sell them for good margins. With low transportation cost, steel mills get a great product at a price that none of the big seaborne players can match.
today. Capitulation has occurred and we will see a steady climb from here. Shorts will realize this and rush to cover (I hope). Get this stock above $5 and day traders will return adding liquidity to the stock.
Company insiders have about 3 weeks a quarter that they can buy or sell stock, he put the purchase off as long as he could and since he can't sell it now, he must be confident in the long run about BL or some other asset sale.
Earnings are going to be positive but they are not going to blow them out of the park. So his actions is telegraphing an asset sale. Let's face it, with the help of Quebec, the Unions and CLF shedding all of their liabilities, this mining operation is a great buy that should be profitable at the current iron ore prices.
Guess Citi forgot they sold the coal min in WV and down to 2 met coal. Maybe they are looking at data that is over a year old and that does show heavy exposure to China. But currently CLF's APIO is the only iron ore that is shipped to China and to date that operation remains cash positive and profitable. So Michael, you may want to go back to Citi and get updated information.
If you are not familiar with accounting, hire an accountant to review income statements and balance sheets. Do not take investment advice from someone on a message board.