Draghi is going to expand the balance sheet of the Euro, Fed is going to have to increase the money supply or the dollar is going to really shoot up. Would be a great time to print dollars for infrastructure.
You know there is another company that has a lower junk rating, TSLA. Doesn't seem to harm them...
The other component is continued growth in the US market due to a low cost and stable energy domestic source. CLF will see their US sales expand where they have good margins on pellets and low distribution cost. They may need to keep BL in order to supply US demand into the future.
The current run up in the value of the dollar is equivalent to a .5% increase in the Fed funds rate.
On this I agree with you 100%. He has resorted to the same type of statements that short do, absolutely nothing to back up his position.
A mint Pinto can get you $12,000. A 67 Mustang GTA will get you $70,000. When I was younger, I had each of these at one time, should have held onto them just like people should hold onto CLF.
that you need to address the markets to stop this crazy unchecked short selling. Now that he has figured out he can be effective, look for more out of his office. He can do more for this company in one week than the former management did all year.
released news today on the Wabush mine that talks between CLF and MFC are off.
Also on Oct 4 there is a good audio on the Ring of Fire and CLF working with parties to sell the assets. Most of it is due to the frustrations with the government's progress.
They have broken off talks with MFC on the Wabush mine, low ball offer won't fly.
Fed acknowledges European problem and the strong dollar isn't helping, Fed may take actions to weaken the dollar to help out the world economy and that too will send materials up.
Hum, let's see, US gdp will be hitting close to 4% and employment keeps adding 200K jobs. China, while their percentage of growth is slowing, they are still at all time highs. While Germany, France and Italy are having problems, countries like Brazil and India are overtaking them with their growth. I don't think we are seeing a world wide recession, rather we are seeing a shift. The biggest shift is the returning of manufacturing to the US from countries like China due to the low cost energy in the US, the high cost of shipping and the rising labor cost in China. Steel production in the US is growing and with environmental regulations, that means iron ore pellets and more business for CLF that is not guided by seaborne spot iron ore prices.
You consolidated all the cost for the entire company and then took the losses again on coal and Canadian operations. SG&A is a correct charge, exploration is over stated and Capex is part of goods sold. Looking at Q2 consolidated report, they had a large misc expense which is related to the closure of Wabush. Just pull up the consolidated income statement and plug in your numbers as they are listed making sure you are not doubling expenses. Know what goes into cost of goods sold and operating expense.
Read 2014 Q2 income statement, they were even on cash, should be slightly cash positive in Q3 as BL has cut cost. And remember, BL has a higher grade iron ore that gets a higher price than 62% seaborne spot. The trouble is S and P is looking at cash cost plus D D and A. Amortization charge has doubled since CLF took the huge impairment charge against Canadian mines. This charge reduces taxes that result in a tax gain that does not show up to reduce their total cost booked against BL. So you really need to take the net loss charged against BL and add the tax benefit back in, then you would be near a break even point. The income statement does this but does it with separate line items, really need an analyst that can read and understand the income statement as well as the IRS section 197. Instead of asking questions about the large tax benefit, they say their loss would have been much larger without it and not telling us that their losses would have been much less if amortization charges had not doubled.
The fact is they do understand it but choose to ignore it because it benefits their paying clients.
Tesla's bond rating is B- and no one in the market seems to have a problem with that. Most of the home builders have junk ratings and no one in the market seems to have a problem with that. GM just got upgraded to BBB- and no one in the market had a problem before the upgrade.
Do you realize how small of a percentage of CLF's business is BL and that BL is a break even cash cost. The other iron ore divisions have much lower cost and are very profitable. There is no reason to sell any of these assets and management should just continue all operations until the value of these assets return.