Seeking Alpha

Cliffs Natural Resources +2% as Deutsche Bank upgrades to Buy

  • Cliffs Natural Resources (CLF+2% premarket after Deutsche Bank upgrades shares to Buy from Hold with a $27 price target (up from $22) on valuation and strategic outlook given significant management changes and cost reductions.
  • CLF's acquisition of Consolidated Thompson provides an avenue for long-term growth, has re-oriented CLF to the seaborne iron ore market and directs sales to the Asian market, the firm explains.
  • More than half of its consolidated sales volume is priced based on international seaborne benchmarks but U.S. iron ore contracts provide stable price realizations for CLF, the firm says; uneven performance at its coal business remains a concern.
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Comments (9)
  • fanebrp
    , contributor
    Comments (278) | Send Message
     
    CLF is the greatest for making $ with Puts and Calls. The money keeps rolling into my house! I need to add more storage room.
    14 Jan 2014, 10:42 AM Reply Like
  • chunghk
    , contributor
    Comments (305) | Send Message
     
    Small investor may view this upgrade as a hold only. Its dividend is moderate compared with bank CD rate, stock price now more stable sitting on $23, no harm to hold, yet, for the long term, it is very difficult to reap a handsome profit because every eye is turning to Chinese procurement of iron ore, shutdown of Canadian chromite project, inability to pass the strong barrier of $30. Thanks.
    14 Jan 2014, 11:57 AM Reply Like
  • chunghk
    , contributor
    Comments (305) | Send Message
     
    CLF - don't be so happy early, it is actually a good bye stock, a hopeless one, no where around $25 to $26 presently. Always turning to the Chinese procurement of iron ore only.
    14 Jan 2014, 11:19 AM Reply Like
  • slash32is4
    , contributor
    Comments (161) | Send Message
     
    the cycle will turn when noone expects it
    14 Jan 2014, 11:24 AM Reply Like
  • chunghk
    , contributor
    Comments (305) | Send Message
     
    CLF - this upgrade does not mean anything, it is actually a good bye stock, a hopeless one, it may mean a hold stock only. Every eye is turning to the Chinese procurement of iron ore only with no chromite project cum low dividend. How can we be so optimistic? Thanks.
    14 Jan 2014, 11:31 AM Reply Like
  • slash32is4
    , contributor
    Comments (161) | Send Message
     
    The US stock market was also hopeless in early 2009
    14 Jan 2014, 02:38 PM Reply Like
  • chunghk
    , contributor
    Comments (305) | Send Message
     
    CLF - German Bank's upgrade to "buy" is a bit aggressive, "hold" is justified in view of the current dividend of 2.62% yield in comparison to current CD 1 year or two years bank rate, assuming no interest rate rise. At the present $23 stock price, small investor will certainly agree to the "hold" rather than "buy" or "strong buy" as categorized by Sacks. Thanks.
    14 Jan 2014, 06:20 PM Reply Like
  • chunghk
    , contributor
    Comments (305) | Send Message
     
    CLF - Last year one analyst from Credit Suixxx rated this stock price at $10 with possibility to bankruptcy possibly in 2014, if my memory does not fail me. Now, every analyst is so optimistic, wonder the climate changes quickly just as the snow storm comes to the US east coast?
    14 Jan 2014, 06:27 PM Reply Like
  • bugjam0924@gmail.com
    , contributor
    Comments (2) | Send Message
     
    Clf is shipping to China..wait til saftey issues demand bridge and pipe line replacement/repair.
    16 Jan 2014, 08:11 PM Reply Like
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