and CLF releases a generic statement they published. Drapkin is correct in saying management is asleep. These people can't get their PR department to get them the needed face time.
Enjoy your vacation. Got me thinking about heading over to SF to visit Chinatown. Will be interested what may unfold in the coming weeks, don't expect for current management to go down without pulling something out of their hat.
First of all, there is not a single post on these boards that move the markets, that is just crazy! What Solarmanmike is saying is that as we get closer to the zero hour, the odds of a positive news release out of CLF goes up. The odds Solar is right is getting higher and you have to realize that only 5% of the options players get it right.
If the SEC could do that, there would be no bashers on these message boards! You would be one of the first to be thrown in jail!
I understand the contractual relationship with their limited partner, maybe when the contract is redone in the future, CLF may want to change things a little.
Maybe you can tell me on CLF's income statement they show iron ore produced for others and is not part of their sales. What does CLF get for this?
It is important and that is why I said CLF needs to mark all of their Canadian ore FOB Sept lles. Otherwise their Chinese customers can just buy their ore from the Asian Pacific operations.
You are now seeing the light, when the price of iron ore falls, shipping becomes a larger percentage of the margins. This why CLF will maintain solid profitability in the US market and why the lose their A___ on shipping to China from Canada.
There are buyers for Bloom Lake and someone buying it for $2 billion could produce iron ore for under $80. The reason they would be under CLF's current cost is simply because their initial cost and upgrades would be a third of what CLF has into it. Some people here think Bloom has no value because of CLF's cost per ton and the current spot price, well their cost is high because they paid too much for it and spent too much on CapEx. Bloom does have value and any large steel producer would love to have years of high quality iron ore supply at $80 a ton delivered to China.
AND CLF ships ore to their US customers on their subsidiary's ships where they pick up on that extra margin! There is no way that a competitor from Australia that has iron ore cost at $40 a ton can compete with CLF in the US market.
No one can prove it, and that is why organized crime uses shorting stocks to launder money in offshore accounts. The only way CLF can fight it is to take on the shorts by constant media appearances and taking actions such as a stock buyback. They could really trap Casablanca if they are in fact shorting the stock. But they refuse to move thinking those shorts will leave on their own.
In Q1 they were cash positive, yes they borrowed $175 million, but they increased their inventories to $600 million because they could not ship all they produced, they do that every Q1. When you look at current assets vs current liabilities, the had gains in Q1 over the previous quarter. It is clear you are not reading the whole income statement. On the CLV shares, they are convertible to CLF and valued less than the CLF shares on the conversion. People bought them for the high dividend and the smart investors traded out of them as the conversion date gets closer. On the debt covenant, it only applies to their credit line and that will be paid off by the end of Q2 from the proceeds of the sale of inventories paid for in Q1. Then with reporting a profit in Q2, no chance of changes. And then sitting on over $400 million in cash by the end of Q2, there is no way they will cut the dividend.
I can't blame him, CLF's management is not providing an ounce of support. You read junk published from bloggers on MF and SA and no comments out of CLF or Casablanca. And the war of words on the proxy statements doesn't help.
This is the point I was getting at, both sides talk but no specifics come out. Really, now is time to start listing the specifics.
"The Company’s Board and new management team led by Gary Halverson have taken - and will continue to take - decisive steps to reduce costs and prudently allocate capital while steadily improving Cliffs’ financial and operating performance, including through the ongoing, comprehensive review of our portfolio of assets and strategic options. This Board and management team is best positioned to deal with the difficult price environment Cliffs is dealing with today. Change is already underway at Cliffs and we remain committed to enhancing value for all of our shareholders"
Still talking generalities and no specifics. What are your actions? What assets are you looking at and what are your plans for them? What change is under way? Now is the time to get in front of the camera and tell the world all the details. Your time is running out and you may lose the support you need to keep your jobs.
I would love for the SEC to require shorts to disclose their large positions, but that just not in the cards. CLF has to realize they need to play the game now and there is a way they can win if they play. If all they do is fold at every hand and do nothing, then they will lose. CLF management is still running the company, start acting like they are in control now, we don't have time to change the rules.
If ore is going to stay at $100, CLF needs to come out and say that they are only going to supply the local market as current freight cost does not justify shipping the ore beyond N. America. Iron ore is available for purchase FOB the US port.
It is not Casablanca's position to do CLF's work for them now and if Casablanca is behind it now, when they take control, they will change sides and attack it with inside knowledge. I am beginning to think that CLF does not even understand what a short is. CLF has had every opportunity to take the shorts out and they have not acted. CLF needs to step up now and pre announce Q2 earnings range, propose a stock buyback at these levels and get in front of the media… if they don't act, they are not serious.
They have the Canadian assets as well to add to that IPO. good grief, look at the Casablanca proposal...