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Investors are thrilled about Cliffs' (CLF +17.8%) better-than-expected Q1, but Cowen questions...

Investors are thrilled about Cliffs' (CLF +17.8%) better-than-expected Q1, but Cowen questions whether the miner has turned the corner. CLF is a relatively high-cost producer, Cowen says, so weakness in iron ore prices should continue to have an outsized impact on shares. The firm notes that tax rate variance was meaningful in Q1; utilizing a 30% rate would have brought adjusted EPS to $0.37 vs. reported $0.60.
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Comments (5)
  • rheimerl
    , contributor
    Comments (433) | Send Message
    i hear ya!...but jeez most people thought clf was going to 10 ( or worse) and wasnt even a viable company anymore! give me at least a one day break!
    25 Apr 2013, 12:40 PM Reply Like
  • maverta
    , contributor
    Comments (329) | Send Message
    rhe-great response. after losing my shirt on this stock, they can't even let you enjoy 1 day. don't lose any sleep on what the analysts say....they're almost always off the mark.
    25 Apr 2013, 02:14 PM Reply Like
  • Johan1952
    , contributor
    Comments (34) | Send Message
    Cowen's analyst should look at the balance sheet again and listen carefully to the cc.
    US Iron ore activiity is the core driver for CLF's revenue & profits. The cash cost/ton was $60 there (hardly a high cost producer !!)
    If production can be kept at 21 million dmt pa in the US even with a $115/DMT price for the seaborne 62% fe CFR China CLF will be profitable ($2.80 EPS pa).
    Another favorite for the shorts : ore reserves !! US iron ore business has 800 million dt proven reserves !!


    With the tax rate he has a point ( Does AAPL pay 30% taxes ? Maybe Cowen does... i don't !
    25 Apr 2013, 03:01 PM Reply Like
  • Pharma Guru
    , contributor
    Comments (11) | Send Message
    This was a $100 stock not long ago. Not much has changed. It remains the market's best value even after this jump to $21. Steel isn't going out of style anytime soon.
    26 Apr 2013, 12:43 AM Reply Like
  • sulo
    , contributor
    Comments (111) | Send Message
    In 2088 and 2009, stock players shorted the banks in unison until there was an international uproar. If all the major players short a stock it is possible to put a company out of business. It is hard to figure out exactly what is happening with clf.
    29 Apr 2013, 07:49 AM Reply Like
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