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Cliffs Natural Resources (CLF +1.9%) turns around after opening sharply lower on Credit Suisse's...

Cliffs Natural Resources (CLF +1.9%) turns around after opening sharply lower on Credit Suisse's downgrade of the stock and reduction in its target price to $30 from $50. The firm cited CLF's massive exposure to iron ore, which has seen prices fall 35% in the last two months.
Comments (4)
  • gtbfl
    , contributor
    Comments (4) | Send Message
    Gee .... Lucky I wasn't following their advice yesterday !
    5 Sep 2012, 11:42 AM Reply Like
  • Eisotrader
    , contributor
    Comments (37) | Send Message
    Something about myself? I'm a professional skeptic. I believe in what the market is telling me (read camdlestick price charts and selected technical idicators), not the opinions of analysts, most of whom are market wannabees, but work for a salary because they don't have the guts to trade their own money.


    As usual, the analysts make the change in price target and rating after the major part of the price move has taken place. Great 20/20 hindsight dressed up as analytical prose. Credit Suisse's downgrade is a signal to look for CLF to form a bottom soon and then start moving up.


    After the move up is well under way, chances are the analysts will discover that iron ore prices have firmed, that the world economies are still using large amounts of iron ore to make steel to build and repair infrastructure, and will raise their target and rating for CLF.


    I have no axe to grind against Credit Suisse. Their analysts are probably more sophisticated than most. They just happened to be the firm issuing this latest hidsight opinion on CLF. It's all part of the game.


    5 Sep 2012, 11:51 AM Reply Like
  • ShanTuo
    , contributor
    Comments (12) | Send Message
    Hi Eiso,
    As a person who's had 5 generations of family owning huge amounts of mineral rights of iron, I think I can say something with confidence: It's allways been this way...
    5 Sep 2012, 01:02 PM Reply Like
  • mcarreira76
    , contributor
    Comments (2) | Send Message
    Time to accumulate shares, iron ore is the basis for most if not all infrastructure on the planet, not worried about what some hack analysts trying to make a buck does...
    5 Sep 2012, 06:11 PM Reply Like
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