If they bankrupt BL, all those fees would be put in as a claim and they would be a fraction of the high estimates. Knowing bankruptcy is possible, most of those claims would be reduced through negotiations. The truth is it is not going to be $700 million, it is a number that the shorts have lock onto to without revealing the entire scope of the matter.
Package up your posting and email it to CNBC, Bloomberg, Yahoo Finance and any others that come to mind. Excellent questions and interesting responses.
They are buying at the last minute before they can't make purchases ahead of earnings. They know something that everyone should be able to see, their hedges have them locked in at $87 a barrel and it does not matter what the price of oil is. HK should be trading at a price range it was when oil was at $87 which was between $5 and $7.
To retire $1 billion in bonds, the most CLF would have to come up with is $700 million, at current bond prices they would need $600 million. The coal mine sale and $25 million from cash from continuing operations in Q4, they have $200 million. Two more coal mines could give them the $400 million more they need. When they bankrupt BL, the parent company of CLF will have the biggest claim against it and could net a couple hundred million out of it and be clear of all liabilities. Do the same with Wabush could give them $50 million. So without even touching Asia Pacific and the Ring of Fire, they could easily clear $1 billion of debt off the books, maybe even clear close to $1.5 billion.
Absolutely no other CEOs have been in front of the camera more than Steve Jobs and Meg Whitman… both are household names. They don't get that well known unless they are in the public eye. Thanks for those two examples, that is exactly what CLF needs!
You will find it on their annual report 10K 2-14-2014, exhibit 21. Bloom Lake is a limited partnership and they have another subsidiary under Quebec Mining and Wabush.
I do, beginning to think it has as much impact as posting here on Yahoo. If we could get all the longs to pay in $100, we could afford to buy ourselves a couple analyst. Just too bad CLF could not find a dynamic CEO that would feel comfortable in front of the camera like the CEO for AA.
First of all, look at their inventory levels, it is still much higher then their average as they did not liquidate that much in Q3. Then you want to factor in a tax benefit to offset the increased amortization amount due to the impairment charges. Which leads me to the high rate of depreciation, depletion and amortization which comes off earnings but adds to cash.
Bottom, from QuantumOnline:
"The preferred shares are mandatorily convertible on 2/1/2016 into a variable number of Cliffs Natural Resources, Inc. (NYSE: CLF) common shares based on the then current price of the common shares for 20 consecutive trading days immediately prior to the conversion date. The conversion settlement rate will be 0.7037 shares per depositary share if the then current market price is equal to or greater than $35.53 and 0.8621 shares per depositary share if the market price is equal to or less than $29.00"
Normally after being down 20 cents I would sell my position, after this post I am going to double down. Thanks.
It is all about the fall in oil, it was up a dollar at the open, now is down a dollar. Have not really figured out the relationship as lower energy cost help iron ore pellet producers like CLF.
None, go to Morningstar, enter CLF, click on bonds and scroll down to the breakdown of all the bonds. They list all of their bonds and none of them are callable. Click on each bond and it will give you more details like all of them are unsecured.