Cliffs Natural Resources (NYSE:CLF)

CAPS Rating: 4 out of 5

The Company is a producer of iron ore pellets in North America and sells its pellets to integrated steel companies in the United States and Canada.

Recs

1
Player Avatar justdreamin (< 20) Submitted: 4/3/2013 9:40:29 PM : Outperform Start Price: $18.34 CLF Score: -18.22

At current levels Cliffs is a buy. I agree with JPM that the negativity around iron ore, China growth, and North America are overblown. It needed a good lesson and got one, but they threw all issues in during the last quarterly earnings call. It won't be straight up, but it's time for this ship to stabilize and move up.

Member Avatar aljahbar (< 20) Submitted: 4/9/2013 9:26:39 AM
Recs: 0

Interesting since JPM sold 1.3 million shares since its previous filing according to Nasdaq or 61% of its total previously held shares in CLF see edgar EC form 13-F at http://www.sec.gov/Archives/edgar/data/19617/000001961713000198/jpmc13f20121231.TXT for the 12/31.2012 period

For a list of institutional holders that decreased positions between Q3 and Q4 filings see http://www.nasdaq.com/symbol/clf/institutional-holdings/decreased#.UWQLU5Pvt8E

223 Decreased Institutional Holders
23,753,376 Decreased Total Shares Held

This dumping of CLF began in the 4Q 2012...I cannot believe such a dump of institutional holding would have occurred on the guidance which we all heard at the 3Q earnings release call...Yes there was a drop in Iron ore prices but frankly such major institutions as listed at NASDAQ and the 25% slashing of holdings from these institutions such as JPM for 1.3 millions shares in a 3 month period Or 61% of total holding from 3Q

This has continued to occur in 1Q 2013 and the charts show no technical sign of stopping whatsoever...its taken a breather at near the second to last support level of between $17.45 and $18...but the technicals show no sign of reversal. the next support level is $12.50...if a major improvement isn't shown in the 1Q of CLF earnings then we go into summer where many are expecting light volatility and a drop in the market...with recent employment numbers stalling and fiscal crisis woes ahead I am seeing a drop is probable to the 2009 lows of near between 13 and 13.50. possibly as low as 12.50 which is just off the 3/9/2009 bottom five years ago..

INSIDER SELLS:
however in the last 3 months there have been 18 insider sales of shares versus a total 21 in the last 12 months

I agree with every one that the forward looking prospect after a sure sign this bleeding has stopped of CLF is very good...but this stuck pig is still gushing blood... well unless 1Q earnings is stellar and it most likely won't be...there hasn't been enough time and even if it is stellar the summer will turn it tepid at best ...if Korea rhetoric continues, or Bird Flu in China then forget it the stock drops to 2009 lows

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