Huge income tax provision, not familiar with prior quarterly results, but this cost to earnings seems out of the average range. They also have a big drag on earnings related to their Canadian operations. Really don't expect this to have much of an impact on CLF tomorrow.
I believe the Turkey connection is tied to the US allowing to use their air bases... to bad the US steel industry is being used for political favors.
Thanks death race, I have been saying that for a long time, finally put him on ignore and will not read his postings.
Yeah, I know. Waiting for the day CNBC fires him or they get sued for his opinions given over their network.
I don't care what he says as well, but what this is telling me is that the long position has ponied up some cash to pay Cramer and his group to become positive. The Street does nothing unless they are paid.
I see it as a disconnect between the general market and commodity prices. Falling commodity prices should lead to decreased prices in areas such as construction, transportation, durable goods and other areas. But yet these prices remain firm and in many areas they are increasing. While the prices for the basic commodities they dig or pump out of ground remain weak, value added products that use these commodities remain firm and this is the advantage CLF has with specialized iron ore pellets serving a localized market. CLF just needs to report a clean quarter without the drag of losing sectors and further debt reduction from continued bond purchases. We won't see that until Q2 of 2016 as the CCAA process should be closed in Q1 and CLF will not provide the market with updates.
"Still, the Chinese market has remained heavily oversupplied, creating a global glut and triggering trade tensions as the nation exports its surplus."
Yes we are going to see cuts in China, but it is targeted at reducing their steel surplus and will directly result in a reduction in exports. This news should be very positive to CLF and the US steel market, just need the same from S. Korea, Turkey, Germany and Brazil.
What will they default on? They have enough cash on hand and from continuing operations to cover interest expense for years to come and their nearest bond due is not until 2018.
broke again, in the CCAA process, the unions are the bottom of the food chain and just like the Wabash union employees, they will have their pensions cut. Or look at the future benefits the union employees will get from the coal mines... the whole pension system in the US is headed towards bankruptcy and no one should count on those benefits into the future.
If you want to know something, do the research and find it and form your own opinion. Then publish your research on this board to help others to develop a research path.
LG is shrewd, would not surprise me if this whole Champion deal was a smoke screen to allow time to put together bond purchases. As I have said before, we need to wait to see the final closing of the CCAA.
With auto and construction the bright spot, these two sectors account for 66% of US steel demand. Rails are being hurt by reduced coal and oil shipments. Construction and autos always show weakness in the winter months...
If they shut down and stop all cash flow from operations, they will not have the cash from financing the CCAA process to keep afloat.
If Essar Algoma shuts down, I doubt they would have the money to bring it back on line. No Algoma, no Minnesota. Hard to tell what the game plan is for CLF on this matter.
Thank you ironorestrong, I have to be gone during the day and your information is very helpful. As well as some of the replies to your postings from others.
Quebec wants to see growth in the area which is needed for their aggressive transportation and port development plans. Champion has shown their hands that they can spend next to nothing for BL that allows them to sit on an idled mine. Again, same old no information and lots of speculation on little moves. LG knows what is going on, just have to trust he is doing what is right.
Bottom line, bankruptcy is caused by a default like not paying off bonds when due which the nearest bond is due in 2018. Or not being able to meet interest payments and with the elimination of dividend payments and losing divisions, I can't see where they can default there. And finally favorable tax credits carried forward and low bond prices, CLF can retire much of their debt with a fraction of the cash to face value. LG has a solid debt reduction plan and is on target. He NEVER expected a dime out of BL and moved forward with the CCAA to eliminate massive liabilities. Many of us tried to second guess the process about CLF obtaining more value out of these assets and were wrong. It comes down whether we believe LG is headed down the right path or not… LG's actions to date is not one of someone directing the company towards bankruptcy.
CLF has not had a quarter without the drag of coal and Canadian operations… won't see it until Q2 of 2016. On steel demand, in the US both US steel production is down 19% from last year and imports are down 12% from 2014 to 2015 (AISI).
We need to see a labor adjustment into construction and the DEC jobs report showed 45,000 increase in construction jobs, that is a start.
Buck, as I see it the economy has yet to recover from the last downturn. The problem remains construction. When the downturn hit, much of the labor left, Mexicans returned to Mexico and many of other workers found jobs in other areas. Now that construction has picked up, very few of these people are returning to construction and we have a huge labor shortage developing in construction. With 40 percent of steel demand coming from construction, iron ore needs a healthy construction industry.