It will after Q2 when the SEC releases that information. Along with others, they are setting up a big bear trap.
Nick, there are some new owners that will be disclosed soon that makes Casablanca look like a small fish. And these owners will not sell their shares to the shorts to cover.
Only ones dumber are the bashers that keep talking to themselves on the Yahoo Message Board. Just keep on adding to your short positions, would be happy to lend you some shares to short as well.
The following will take place all across the region, from CBC:
"As if the area needed any more bad news, 38 employees of a long-standing grocery store in Labrador City will soon be out of work.
The Carol-Wabush Co-op will be shutting its doors for good in the next week or so, the result of Co-op Atlantic's announcement in April that it is getting out of the food and gas industry across the country."
I didn't vote for these guys, but I am glad others did. If it wasn't for LG, this company would have went bankrupt as Kirsh and friends were just that bad. LG made the move to preserve cash and profits allowing him to retire almost $1 billion in debt in less than one year.
Looking at the track record of all the analyst that cover CLF, when it comes to earning projections I could say the same about all of them. Think I will take a cab ride once a day instead of watching CNBC.
There is a big short trap taking place right now and it is sucking a bunch of people into it. Big players are willing to loan all the shares shorts want to sell as they are accumulating more and more shares, basically buying the shares they lent these shorts. And when the time comes and you have resolution on BL, good Q2 earnings, reduction in debt… there will be no shares for the shorts to buy.
Like I said, do what ever you want. For me, I have discussed this matter with people in the business and am comfortable with the current direction we are headed.
I am tired of explaining the facts, this stock is trading on the emotions of the market. In this industry, putting LG on CNBC to explain the company's direction won't do it as the product line is not some fancy coffee or rocket ship. Right now management is comfortable with the current debt levels and is constantly trimming expenses to keep all the divisions profitable which includes coal. The company is not going bankrupt as it has no problem servicing debt, even at the lows of the iron ore market.
Is the company under a short attack, I say yes but others in the company say no, they say all of this was brought on by BHP and RIO and looking to correct the problem at the source.
A year from now, CLF will be generating $3 a share in profits and TSLA will continue to be operating at a loss… good luck in your investment, whatever you choose to do.
One bonus, if they get $500 million and use that to buy back bonds at a 50% discount, they will reduce debt by $1 billion and generate $500 million in income.
If there is no bid for BL, CLF could keep the mine and partner up with Quebec selling them 20% of the mine, the railways and dock facility. In that scenario CLF would get at least $500 million, elimination of all the liabilities and a much lower cost per ton.
Look at the other coal stocks, as CLF rode them up yesterday, it is riding it down this morning. Heavy selling in the first hour may change as the day goes on. I placed my bet that it will, let it ride and see where it goes.
The IRS will not allow you to write off an asset for more than you paid for it and impairments only accelerate the depreciation. For example, you buy an asset for $1 billion and write it down to $100 million by taking a $900 million impairment. Then you sell it for $400 million. If you then write off the $600 million loss, you are taking a total write off of $1.5 billion. That doesn't work for the IRS, they will make you take a $300 million gain so at the end of the day your total write off is $1 billion.
Another source of income for CLF is the buying back all those bonds at a discount. The have to record the difference between the face value of the bond and what they paid for them. All of this income is taxable but CLF will not have to come up with money to pay for it since a good part of the impairment charges is amortized forward, their future tax benefits will be less.
This should help you out, from 2014 10K:
U.S. Iron Ore
Asia Pacific Iron Ore
North American Coal
Eastern Canadian Iron Ore
Total segment assets
Note, if CLF gets more than $305.8 million for their Canadian operations, they will have to count that as income since they took the huge impairment charges earlier.