Living in Nevada I can tell you that growth is returning and more of it is coming from businesses other than gaming. The business park that TSLA is locating is going to be one of the largest in the country and the Mustang Ranch is just down the road. Steel consumption in the US is just at the ground level!
I watch the velocity of trades, real time percentage of sell and buy generated trades. There was a huge shift to the sell side that took it back to $7, but then it was greeted by a run of small but constant buys that took it off the bottom. That type of action is what this stock needs to take the short trade off the table.
To that I agree, but some positive news can take these players out. So far all we are getting is discussions, we need some actual resolution to BL, AP, bond purchases, met coal mines… and the shorts will rush to the door. Hopefully LG will deliver this time with results and not have a war of words with the analysts.
With a degree in statistical science, it is data that drives the charts, not the charts that drive the data. People constantly use statistics and bend the analysis to fit their position and few understand the basis for the results and accept them. But most of this analysis is based on simple regression analysis as most of these people can compute averages and a few can compute the standard deviations. But it all comes back to the data and whether it really reflects reality.
This stock has a huge well funded short position that keeps the attacks coming in the media. The Street for one comes out with positive news that is driving the stock up only to follow it up why they have a sell rating and every one of their points are totally unfounded. None of them outline CLF's core business in the US.
This stock is driven by news, not your charts, I would spend more time reviewing different news sources. With the release of earnings and the end of the quite period, we will see a flood of news coming out of CLF as they can comment on negotiations with the Canadian government, unions and perspective buyers. Keep an eye on Canadian, Australian and West Virginian newspapers.
There is a need to clear it up, we are not seeing a general short covering, we are just seeing the smart shorts covering. We need to see 40K shares a minute and we may see it going into the close as news is moving fast in Canada.
The premium is completely wiped out by the high transportation cost. CLF really needs to sell this mine and with the Canadian government's help, they just may get their desired price.
Exactly, government help will increase the value of the mine so that CLF can sell it for a fair price. If someone steps up and offers CLF $1 billion, that is a 75% discount to what CLF paid for it. Then factor in another discount for a government subsidy, the discount grows giving the buyer a much lower cost to produce iron ore. CLF will sell this mine, now it looks like they will get a fair price and a bigger impact on debt reduction. A deal on BL would push CLF's debt below $1.5 billion.