The only thing I can think of is he is betting on a Republican win and that these two can hold out until then. I think there are better ways of making a statement than throwing money away, so he must be serious about buying in.
US Steel and MT contracts expire in 11 days and the companies want to cut healthcare to retirees and make current employees pay part of their insurance cost. Looks like a strike could take place.
CLF's contract expires a month later which makes X and MT do all the heavy lifting in negotiations. Plus it puts CLF in a position to supply the steel companies if their mines are shut down by a strike.
Minnesota is stepping in providing cuts in royalty payments and energy rates to provide the companies enough savings to offset the added healthcare cost. But with all the layoffs in the area, the companies sound like they are making a stand as their operations have been losing money.
Search Lake Carrier's Association, they have all that information, August data won't be available until around Sept. 15. AISI gives you weekly steel production broken down by regions and you can get a read on the August trend.
Or could it be the last nail in Ben Levisohn as he may join his buddies and be looking for a new job.
Yes it does, CLF has a base price plus hedges in place to insure the $75 base revenue as they list. They even have hedges in place to protect them in the case hot rolled steel prices fall below their threshold.
Page 67 of the 10Q, if seaborne price goes to $30, CLF's US iron ore pellet revenue will be between $75 to $80. If seaborne goes to $80, then their US price will be $80 to $85. This is what long term contracts do, protects CLF on the downside, protects the steel companies on the upside, but everybody stays profitable no matter where the price goes.
A bond holder will sell at 50 cents if they bought it at 40 cents. Bonds, like stocks are traded on the open market and most holders did not buy them at the issue price. Currently people buy these bonds on the open market for 50 cents as they think they will move up from here and get paid interest based on the face value of the bond.
US iron ore pellets would be $70. If seaborne drops to $20, CLF's iron ore pellet contracts would be at $70 because all the contracts have a floor price of $70.
It would if a major player increased their position in CLF OR if CLF would just step up and buy back shares. Shorts speak negatively about the buy back, because they know taking 30 million shares off the float will take them out so fast that they would not be able to cover.