Extremely low volume before the holiday, you will have wide swings, don't read too much into it.
I have been a builder for 27 years now and you just don't jump up and start producing $1 million houses, in a recovery it starts low and builds from there. Multifamily to starter homes to move up to McMansions. You have to move through one to get to the other. But if they are building multifamily, that is a huge amount of people working and money being spent in the economies which leads to economic advancements. And furthermore, having an increase in permits at the beginning of the holiday season is huge as this is normally a slow period for construction.
I have been waiting for this break above 1 million as now we start adding to inventory as we lose a million housing units a year to damage, tear down…etc.
"Teck Resources Ltd , Newmont Mining Corp, private equity firm Blackstone Group LP and a firm led by the former head of Barrick Gold are working together on a bid for Glencore Xstrata's Las Bambas copper mine in Peru, according to several people familiar with the matter."
Off Yahoo Finance:
"Sifting for potential activist targets has become a popular exercise among professional investors. Strategas maintains a Buyout Index of companies that appear more likely than most to fetch a bid, which includes such names as Deckers Outdoor Corp. (DECK), Atlas Air Worldwide Holdings Inc. (AAWW), Verifone Systems Inc. (PAY), Frontier Communications Corp. (FTR) and Cliffs Natural Resources Inc. (CLF). "
Let me make this clear, I am not the one forecasting a buyout, I am just giving you what is in the media. My personal opinion is that company performance and earnings will drive CLF's price higher than any buyout offer, but a buyout is a possibility.
I checked my records, I have over 8 tons of steel in my foundation and framing alone. Now I understand the amount of steel is affected by the size, earthquake standards and snow loads, but my estimate is that the average house contains 3 tons of steel through framing. Then there has to be a couple tons in appliances, furnaces, water heaters, hardware, fireplaces, lathe, nails, screws...
As goes housing, goes the US economy. With new construction breaking above 1 million units per year, we are now in a full recovery. With housing comes direct steel sales that go into construction and a host of indirect steel sales in things like equipment and home owner's extras such as appliances. Some say we have been in recovery for years and are now hitting new highs in the markets, but for me, the recovery is just beginning with housing.
Please give us their cost of bringing their goods to market and please outline the exact nature of their "debt problem". Like what is their debt structure and how they have been servicing their debt to date. You give us worthless words, please provide the specifics of your position and stop your jabbering.
And why are there so many shorts, as a "Sheep Protector" you should understand the nature of herd mentality.
On these downturns, I wait for the Sheep Dude to show up on the board and buy on the fourth day. He represents the typical short seller that is late to get into the game and late to get out, his loss has been my gain. Feel like I should send him some Ugg boots as they are made with sheep skin that they remove with the sheep alive.
I was driving and thinking about your position, selling their interest may be the way to go, but I would wait until Ontario puts in the transportation infrastructure, that alone will triple the current value of CLF's holdings without investing a single dime into it. If the current value is $1.5 billion, then it would be worth $4.5 billion and with the sale they could wipe all their debt out and have cash left over.
The proven reserves are huge and allows it to be easily shipped to N. America where most of the stainless steel is used. There are other minerals in the area as well allowing a miner to diversify beyond chromite.
They can take on a joint venture partner and CLF would not have to spend another dime. Also you have to realize that the mine will not be producing until 2017 at the earliest. It would not surprise me if Barrick makes a move to diversify away from gold.
A joint venture makes more sense. Miners need to diversify and CLF can make huge profits with a 50% share of the chromite project with no more investments into it.
They make their clients tons of money by keeping a stock artificially low.
I have been working on my house to get it done before Christmas, just got in at 6 PM… Enjoy that turkey short you picked up at $20.80, I hope your sheep followers didn't bite the wool on that one.
I said earlier that if CLF announced a new CEO before Q3 earnings, there would be no take over. However, with the suspension of the chromite project, I am think at least we may be looking at some type of joint venture. Also, I am still waiting for those replacements for the VP's that left.
Yes! They basically reduced the cost of the chromite project by $800 million and reduced the time between expenditures and revenue by a year and a half. Simply wait until the road is in and move the equipment in.