Schultz is on CNBC working their earnings results, I am sure they would welcome Halverson to come on. This is exactly the problem with CLF, they don't realize they are running a public company.
You are correct, but shorts should be worried to see this price movement on low volume. It means there are very few sellers. Can you imagine what just 10K more shares a minute on the buy side would do to the price?
"According to Hedge Fund Research, the average shorts biased fund has lost 10% a year for the last 4 years and was down another 5% at the end of June this year. I guarantee that's gotten much worse this month."
Time to cover their winners to pay for these losses.
Could be, just don't think a CAS win is that clear cut based on the proxy advisory firm's results. I think it has to do with reviewing earning, same is happening with FCX today in a down market.
Volume is not that high, just very few sellers. People must be holding their shares ahead of the Annual Meeting and other news pending. Setting up for a very serious problem for shorts, when they want to cover, they are going to find it hard to find people to sell them their shares. Not a problem for them as long as volume stays under 25K a minute, but watch out when the volume pushes up over 40K a minute.
that earnings were not that bad and better than expectations. Sometimes it just takes time to review the results. I can't find anything seriously wrong. The best part of earnings is the cost reduction. The worse part is the continued inventory build which resulted in increased short term debt, but that will work itself out as US iron ore sales have normalized in July.
We are getting great price movement on marginal volume, if the shorts start buying the volume will hit and maintain 40K a minute average.
I feel I am on track with more thumbs down. Love it when they jump all over me!
Normally I post information found in the market and when it doesn't match their views, their only option is to use baseless attacks. The only thing I have changed is not to respond to these attacks unless they are supported by some facts.
Littlewood from CS suggested that a settlement between CAS and CLF may get worked out. And then there is the Wabush sale which is close to completing the negotiations between CLF, the buyer and the unions. Investors may not want to be short, see if the price movement holds up going into the close.
Read the income statement, same person thought there would be a reduction in inventories, inventories actually increased and net current assets expanded. If iron ore prices continue to recover, inventories are better than cash.
All inventory levels were down except US iron ore due to lower shipments in April with the Great Lakes still frozen over. Year over Year demand now has reached last year's levels which means that inventory will be used up with 2 million tons needed to be stockpiled for next winter when the Lakes freeze over. Cash and credit facility was used to create that inventory and pay for work in progress, but current assets grew over last quarter and current liabilities decreased. BL cash cost has hit $87 a ton which gives them positive cash flow on continuing operations. Wasbush was the drag on Canadian operations and it appears they are close to a deal to sell the operation getting them out from under further charges due to shutting the mine down. Amortization charges are increasing due to the impairment charges they are carrying forward, but the tax credit offsets some of those charges to earnings. It is not dollar for dollar as for every dollar you write off, it saves you about 40 cents in taxes. Anyway I just don't see the same thing and the one cent loss was a beat and a good number.
Q2 has shown how US sales are tied to the ability to ship ore on the Great Lakes. Any disruptions cause sales to drop and to have other markets is a plus for CLF. The only way I could buy off on dropping Asia - Pacific and BL is if CLF is mining chromite up in the Ring of Fire.
Because earnings was good, my estimates were the closest I have been in the past 6 quarters. CLF has made great moves to bring their cost down with BL cash cost target of $70 within reach. They can hit it when they get rid of the drag of Wabush. By selling the mine, CLF will see a reduction in the shut down cost as the employees return to work and get off a very liberal unemployment program.
What matters is the value the company has with the IRS on the asset. Just like my truck, it is worth $10,000 but according to the IRS it is worth 0. If I sell it for $9,000 it will cause me to realize $9,000 income for the year.
So you don't have a clue what a good price for the asset is? Thanks for the heads up on the drop in CLF, bought back the position I sold earlier.