Cliffs Natural Resources (CLF)

TSIF (98.51) Submitted: 12/22/2008 9:21:38 PM : Start Price: $27.86 CLF Score: +7.21

As usual, I bit on this one a little too early from a CAPS play, certainly shows I'm a little cold right now, but I'll carry this one long and to the grave, well to the furnace to warm up if needed!... metallurgical grade coal and iron pellets may not be the stock for today 12/22/08, but with the infrastructure plays coming up over the next 6-12 months, here in the US and worldwide, especially in China, those little iron ore pellets that ship so well are highly undervalued right now! Founded in 1847 with interests in Brazil and Australia, they have held strong over time. P/E in the 4's might not hold as prices drop, but even if they drop they will still be low valued. The cash on hand isn't far from their debt and their margins have room to drop and still keep the foundry upright. Cash flow looks good and a little dividend here and there doesn't hurt.