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XMFSinchiruna (26.55)

I've got 2 words and 3 letters for you... :)



July 17, 2008 – Comments (4)

2 Words:  Cleveland


 3 Letters: C



 Here's my article from today on the acquisition of Alpha Natural Resources.

Plus, track the spate of recent bullish developments and headlines:

Coverage initiated on Cleveland-Cliffs by KeyBanc Capital Mkts

Cleveland-Cliffs buys out minority holder in Minn.

Cleveland-Cliffs Announces Expansion Project at Empire and Tilden Mines

Cleveland-Cliffs soars after new sales outlook

Cleveland-Cliffs Updates 2008 Iron Ore Revenue-Per-Ton Guidance; Provides Commentary on 2009 North American Iron Ore Pricing

Cleveland-Cliffs Appoints CTO Brake to Lead Green Energy Business

And my previous article on them:

Cleveland Makes It, the World Takes It

With the ridiculous sell-off in coal stocks of late, I hope some of you were thinking to pick up some coal shares anyway.  There are a bunch of great companies to choose from, but this one just got a whole lot better.

Disclosure:  I am long CLF.  Again, because I reported on the merger, I am unable to trade shares and so unable to take advantage of this unwarranted sell-off.  But at least I can pass on the recommendation.  I liked AnomaLee's use of the phrase 'conviction list'.  CLF now joins ACH, CEF, SLW, AEM, and AUY on my conviction list.

4 Comments – Post Your Own

#1) On July 17, 2008 at 8:10 PM, kdakota630 (28.79) wrote:

I completely agree, and you know I've liked CLF for a while and already own it. 

My problem is that I don't have any more money to put unto it, and there's nothing I want to sell to get more CLF (such as RIO, ACH, SID, POT, FDG, BQI, etc).

Any particular reason you think so many steel companies were down today?  So many of my red thumb picks shot up, but so many of my green thumb picks were down, too.

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#2) On July 17, 2008 at 8:56 PM, AnomaLee (28.87) wrote:


Well, to be fair I just ripped off Goldman Sachs. I have a good friend who used to work for GS.


Today, steel was down over 4% and KOL was down 8% but the XLF was up over 4% and over 15% in two days! This is still a bear market where everything goes down. I expect CLF to be soft short-term, but we're getting closer to the trough and if it goes lower then it's just a steal. I think CLF has dropped every year for the past 10 years by at least 20% or something like that, but if you were a believer in global growth, inflation, weaker dollar, energy shortages, manipulation, etc.. you'd be up over 800% - over 10,000% in that time frame.

I try not to dwell on "would've, could've, should've", but I've placed several limit orders for CLF pre-split. that came within a few nickels but never executed. I refused to change my limit price or place a market order. I've still done fine, but "would've, could've, should've" definitely...

Now, I just plan to dollar-cost average shares through this bear-market and look at them years from now.

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#3) On July 17, 2008 at 9:38 PM, Tastylunch (28.52) wrote:

Finally a good buy in that I'll probably take. I've been watching in agony as I've intended to buy this stock over two years ago...

I'm sad the new conglomaerate will drop "Cleveland" from the name though. :-(

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#4) On July 22, 2008 at 5:57 PM, goldminingXpert (28.62) wrote:

I'm short CLF directly and have some way out of the money puts that I'm looking forward to cashing when we get back under 70ish. The Price/book ratio of 7 is the most laughable of the ridiculously humourous "financials" of this company.

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