Weak pricing and higher costs were a disastrous Q3 combo for Cliffs Natural Resources (CLF...


Weak pricing and higher costs were a disastrous Q3 combo for Cliffs Natural Resources (CLF -9.4%): Cash costs in CLF’s Canadian division rose 21% Y/Y to $106.06/ton, while the price of seaborne iron ore fell 36% to an average $112/metric ton vs. $176. CLF says key Q4 goals include continued expansion of the Bloom Lake mine and maintaining the dividend through this business cycle.

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Comments (6)
  • wigit5
    , contributor
    Comments (4354) | Send Message
     
    Buyer under $33
    25 Oct 2012, 02:22 PM Reply Like
  • bones2180
    , contributor
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    Amazing maintaining the dividend is their goal? How about manage your business and costs?
    With that statement they know the only reason the stock is not at 32 is because of the dividend, no other reason to own it till next qtr
    25 Oct 2012, 02:26 PM Reply Like
  • bones2180
    , contributor
    Comments (87) | Send Message
     
    Looking at their dividend history they more than doubled it in April from February From .28 to .62, so go back to .28 until you turn things around
    25 Oct 2012, 02:32 PM Reply Like
  • Thomas Azzara
    , contributor
    Comments (453) | Send Message
     
    Credit Suisse EST. 2013 EPS = $1.55 with TP of 30
    CS EST full year 2014 EPS = .14 cents EPS.

     

    Expect a downgrade from Standard+Poors from 4 Star BUY - and a lower TP (currently 50) as well - by tomorrow.

     

    My TP = $30/share with forward EPS = $1.96.

     

    Cliffs current est. EPS for 2012 of $6.22 seems irrelevant now.
    25 Oct 2012, 02:34 PM Reply Like
  • luckycharlie
    , contributor
    Comments (228) | Send Message
     
    "maintaining the dividend thru this business cycle" is a weak-sounding goal. However, if Romney wins, those Credit Suisse estimates will look absurdly low.
    26 Oct 2012, 10:42 AM Reply Like
  • Thomas Azzara
    , contributor
    Comments (453) | Send Message
     
    Standard and Poors L Larkin downgraded CLFs to a 2 STAR SELL and dropped his target price from $50 to $32.

     

    About CLF's dividend he writes.."We believe that CLF will carry a low P/E on '13's EPS forecast, given execution risks and concerns that the company may not be able to generate enough free cash flow to maintain its dividend." (Oct 26 2012) L.Larkin - Financial analyst (Standard and Poors as in S&P500) .
    26 Oct 2012, 03:22 PM Reply Like
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