The thing about this stock is that picking daily entry and exit points, posting them here is just a real waste of time. The shorts are not covering now and continue to influence the price of the stock.
Jeff is paid by a hedge fund to post this junk, just ignore him and don't let his postings influence your important input.
Read the notes, just don't look at the numbers!
From the 10Q:
"Partially offset by increased idle costs of $24.5 million due to the idle of United Taconite mine which began in the first week of August 2015, and the impact of the full idle of the Northshore mine in the first quarter of 2016 that began in November 2015 versus one idled production line during the first quarter of 2015; and
Partially offset by increased depreciation and amortization expenses primarily due to prior year revisions to our asset retirement obligation estimates."
Yes, their cash on the books is low, but they are expecting a large inflow of cash from the repayment of the loans they gave to the Canadian bankruptcy that must be paid back in full before any payments to secured or nonsecure debt holders are paid.
Long term CLF needs to make a significant move into the DR and DRI market. The percentage of the steel market that is in electric and nat gas furnaces is huge and growing every day. Scrap steel cannot keep up with this growing demand which leads to a growing demand for DR and DRI pellets. CLF could easily double their US iron ore sales and that would solve all of these issues without depending on the price of HRC or seaborne iron ore.
"In the week ending May 7, 2016, domestic raw steel production was 1,748,000 net tons while the capability utilization rate was 74.7 percent. Production was 1,704,000 net tons in the week ending May 7, 2015 while the capability utilization then was 72.1 percent. The current week production represents a 2.6 percent increase from the same period in the previous year. Production for the week ending May 7, 2016 is up 2.2 percent from the previous week ending April 30, 2016 when production was 1,711,000 net tons and the rate of capability utilization was 73.2 percent."
If he wad going to bankrupt the company he would be adding to the debt, not paying it down. Just like an individual, when they are going to go bankrupt, they run up their credit cards to the max.
He has bigger fish in his corner like George Cornell which has allowed him to distance himself from Casablanca.
I believe Taylor bought and held the partnership shares. This is like when he sold the shares for the trust. Or since he and Drapkin were the partnership, as the surviving partner he simply had to sell the shares to dissolve the partnership and pay off the estate.
Have to give you my wife's birthday and our anniversary date so that you can post them for me as well! Thanks for price updates and keeping me out of trouble this weekend.
Hey Buck, been working on a never ending supply of construction management jobs. Seems the experienced people moved on during the downturn.
Not able to watch or trade CLF like I use to, now it is strictly hold and wait for the true short covering. I am not getting too excited until iron ore hits $80 and CLF is profitable without the gains from stock buybacks.
How did that sale of your property go? Hope you came out on top!
Which Victor are you talking about, the electronic, the basic or the power trap? Has to be the basic from long ago...
Profit or Prophet? As you posted makes absolutely no sense. One would think someone that has deep ties in the religion would know the difference on that one or is you postings just smoke and mirrors?
The difference is between GAAP and NON GAAP numbers. The NON GAAP removes the gains from buying back bonds at a discount. What I find interesting is that when CLF takes an impairment charge, Yahoo will report the GAAP earnings that reduces earnings. But when they take a GAAP earnings that includes the gains from buying bonds at a discount, they report the NON GAAP numbers that remove the gain.
Joe, you also need to factor in the discounted price CLF can buy back bonds at, you are using face value. Also you can factor in that if they get their debt down to $1 billion, they can issue new bonds to pay off any bond that is due or they can use their revolving credit line.
Ca, you are right on CLF's contract prices. However, with the price of iron ore going up, that will help future contracts.
jk, remember all those asset write downs? The tax advantage on all of those that are amortized forward will pay the majority of that debt by 2021. The rest will come from asset sales and other savings.