From the Daily Commercial News:
" The Liberals' budget bill, which includes $130 billion for infrastructure over the next decade, passed at Queen's Park on July 24.
Provincial budget passes at Queen's Park
The final vote on the budget was 56 to 37.
Among its infrastructure commitments, there will be new dedicated funds to make nearly $29 billion available over the next 10 years to build a seamless, province-wide transportation network by investing in highways, public transit, roads and bridges. Of this investment, $15 billion will go to the Greater Toronto and Hamilton Area and the rest of Ontario will receive $14 billion for its projects. This includes a $1 billion commitment for strategic transportation infrastructure in the Ring of Fire."
So CLF will sell Wabush and their Ring of Fire Assets will triple in value. News next week will spark a short squeeze. Would not like to be holding short positions going into Monday.
From CBC, 20 hours ago:
"Union employees at Wabush Mines have told CBC News they've agreed to a 5-year contract on Thursday to work for MFC Industrial if the company ends up purchasing the idled iron-ore operation.
According to some members of the United Steelworkers Union, workers voted 87 per cent in favour of the deal."
May have a signed deal by the end of the weekend.
A Bloomberg article has MS predicting a rally in iron ore as high cost miners have shut down. Vale estimates it will be $100. Iron ore price headed up and the stock buyback will lift CLF's share price back over $20.
Idiot, the cost to ship iron ore out of China is so high, they would lose big dumping it on the market for $120 a ton by the time they moved the ore to the port, loaded it up on a ship and then ship it to the receiving port. Really glad you are not investing in CLF, you should really short it.
when volume picks up the price goes up. Not like the CLF of old where increased volume meant additional short selling and the price dropped. Just maybe the short cycle has stopped!
Sell one third of their inventories to bring in $200 million in cash. Buy back shares, don't retire them. When the stock moves up and the shorts have moved on, sell those shares back on the market for a great profit. Use that profit to retire debt.
Yes it is, with the current technology, TMS is going to be a much better play than anything in N. Dakota mostly because the location near the refineries. and not having to transport oil over rail and being able to capture nat gas. Reducing transportation cost is like adding another full margin to their bottom line.
HK could easily break over $10 once the shorts get shaken out.
Expect an announcement in the morning, my guess is a settlement between CLF and CAS as they waited until the last minute to clear a huge block.
Funny, as you look at their Canadian cost over the past income statements and production cost have been going down. And then you look at the small percentage of their business is Canadian and Moody's cut is not very well placed. Finally, CLF has all their financing in place with fixed rates on their long term and their credit line is a variable set on certain parameters that have nothing to do with Moody's credit rating.
Thanks for the update, good to see people are monitoring the progress and reporting it on these boards. Real value and a good break from people pushing the vote to CAS or CLF.
You can not have proof that someone is shorting or not shorting a stock! So while I can't prove they are shorting, you can't prove they are not. But with no shares to short, someone is selling short and the only one that can do it is a fund that has shares to borrow. In order to protect themselves, they need to buy the shares they short sell, so they have to have two holdings which CAS did do. Maybe you can explain why the LLC and LP are listed as holders of CLF?
Something is going on here, but there is no transparency on the short side. Until the SEC requires disclosures on short selling, we will all be in the dark.
And really, speaking of fear mongering, what about all the talk about bankruptcy, debt issues, cost of production and countless other attacks without an ounce of creditable evidence. I will stop and I am sure Solar would stop if the bashers on this board would produce one single piece of data to support their views.
Casablanca is hedged out and will be of benefit to the shorts.
I agree, Casablanca should get busy printing up new proxies with their board addition and get started on filing a conflict notice to be sent out to all those that have voted without their new candidate listed. Then they better make sure they have the money to pay for all of this as CLF will not reimburse them for their cost.
The only thing I can prove is Drapkin's relationships with the attorneys that have filed the "lawsuits". He is behind that aspect of the short attack, I have to assume he is behind other aspects as well.
the company going forward. They know what divisions need to go and what ones need to stay. Shutting down some coal operations and working on a deal to sell Wabush. Bloom Lake's cash cost allow them to generate cash through continuing operations and Asia - Pacific is still profitable. Absolutely no reason to sell these assets now with iron ore prices depressed. Casablanca's direction will not help CLF out. More money can be generated by selling down inventories than selling these assets. The more I review the results, the more I am convinced that CLF is the clear choice going forward.