Cleveland Cliffs Inc (CLF)

[wedinra]

Japan's 2nd largest steel company JFE Steel said it too is interested in expanding operations in the U.S. ( article by Reuters 12/20/2023). If the Nippon/X deal goes through, Clf could be the next target. Rick

[winchem21]

This was unexpected, but it is now clear why and how. Nippon pays less than 1% interest on its long-term bonds and can easily afford to issue 100% debt to overpay for US Steel as they are doing. They have owned Mid Rex (headquarter in Charlotte) for many years and have a lock on global reduced iron pellet manufacturing. The strong alliance between Nippon and the US Japanese automotive plants will become evident. Many of the blast furnace process changes implemented by CLF have been made possible by the pilot plant studies done by Nippon.

There is not a level playing field in terms of availability to low cost capital. Nippon could not afford to do this at this high price if it were a US company.

Meanwhile the US is financing or taking care of most of Japan’s defense security needs and going further in debt as a nation to do this. This deal could easily blow up for good reasons.

Either way, CLF benefits from this entire process which LG initiated. The American workers and union members will likely not benefit from this merger.

[abracky]

Lawmakers push to stop ‘fundamentally troubling’ sale of US Steel



https://thehill.com/business/4367961-lawmakers-push-to-stop-fundamentally-troubling-sale-of-us-steel/

[abracky]

https://www.investors.com/ibd-data-stories/stocks-showing-market-leadership-cleveland-cliffs-earns-92-rs-rating/

[abracky]

https://www.axios.com/2023/12/18/ussteel-nippon-usw-steelworkers

[abracky]

U.S. Steel Stock Has Soared. These Stocks Are The Better Bet Now.

https://www.msn.com/en-us/money/topstocks/us-steel-stock-has-soared-these-stocks-are-the-better-bet-now/ar-AA1lKK2P

[DewDiligence]

Possibly.

[wedinra]

Don't be so hasty. After the regulators block the deal over national security concerns and with the USW backing of CLF, the deal could still go through at a reasonable price. X could end up begging CLF to take the blast furnaces off their hands. Rick

[abracky]

Will Japan's constitutional monarchy keep the US union in place for US Steel buy out?

[abracky]

https://www.nwitimes.com/news/local/business/cleveland-cliffs-raises-steel-prices-for-third-time-since-end-of-auto-strike/article_bd524354-9de8-11ee-9a45-27d9250b31fd.html

[abracky]

Fetterman says he’ll work to block ‘absolutely outrageous’ US Steel sale



https://thehill.com/homenews/senate/4366073-fetterman-says-hell-work-to-block-absolutely-outrageous-us-steel-sale/

[abracky]

Cleveland-Cliffs pivots to share buybacks after losing US Steel to Nippon

18th December 2023

By: Bloomberg

  

Font size: - +

Cleveland-Cliffs announced an “aggressive” share-buyback program just months after making an ultimately unsuccessful takeover bid for rival United States Steel Corp. Cliffs shares jumped as much as 12%.

Cliffs Chief Executive Officer Lourenco Goncalves said Nippon Steel Corp.’s $14.1 billion deal to buy US Steel validated his view that the steel sector remains undervalued.

“Given that our CLF shares are still significantly undervalued, we will now re-focus our capital allocation priorities towards more aggressive share buybacks under our existing share repurchase authorization,” Goncalves said in a statement Monday. “We congratulate US Steel on their announcement and wish them luck in closing the transaction with Nippon Steel.”

The statement signals Cliffs has no plans to submit a counterbid. The United Steelworkers, who exclusively supported Cliffs’ bid, have a transferable right to make a counterbid as part of its collective bargaining agreement. The union said repeatedly it would transfer that right to Cliffs if US Steel chose another company.

Cliffs rose 12% to $20.92 at 11: 34 a.m. in New York, brining the year-to-date gain to 30%. ?

Edited by Bloomberg

[abracky]

Cleveland-Cliffs Comments on Transformative Global Industry Consolidation and Updates Investors on Capital Allocation Priorities

Source: Business Wire
Cleveland-Cliffs Inc. (NYSE: CLF) (“Cliffs” or “the Company”) issued the following statement regarding the announced proposed acquisition of U.S. Steel by Nippon Steel.
Lourenco Goncalves, Chairman, President of CEO of Cleveland-Cliffs, said, “We identified U.S. Steel as an extremely undervalued company with significant synergy potential when combined with Cleveland-Cliffs, creating a union-friendly American champion among the top-10 steelmakers in the world. Even though U.S. Steel’s Board of Directors and CEO chose to go a different direction with a foreign buyer, their move validates our view that our sector remains undervalued by the broader market, and that a multiple re-rating for Cleveland-Cliffs is long overdue. We congratulate U.S. Steel on their announcement and wish them luck in closing the transaction with Nippon Steel.”
Lourenco Goncalves continued: “As we have been guiding, we have already reached our net debt target of $3.0 billion this quarter, with no borrowings on our ABL as of today. Given that our CLF shares are still significantly undervalued, we will now re-focus our capital allocation priorities towards more aggressive share buybacks under our existing share repurchase authorization.”
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs also is the largest manufacturer of iron ore pellets in North America. The Company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. Cleveland-Cliffs is the largest supplier of steel to the automotive industry in North America and serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 27,000 people across its operations in the United States and Canada.
?
View source version on businesswire.com: https://www.businesswire.com/news/home/20231218219899/en/
MEDIA CONTACT:
Patricia Persico
Senior Director, Corporate Communications
[phone]

INVESTOR CONTACT:
James Kerr
Manager, Investor Relations
[phone]

[DewDiligence]

When I’m wrong, I acknowledge it—I thought a CLF-X merger was a fait accompli due to CLF’s support from the USW.

CLF is +9% today, so his is a case where it feels good to be wrong, LOL.

[abracky]

Cleveland-Cliffs Inc (CLF) Up 6.36% in Premarket Trading

Monday, December 18, 2023 06:52 AM | InvestorsObserver Analysts

https://www.investorsobserver.com/news/stock-update/cleveland-cliffs-inc-clf-up-6-36-in-premarket-trading

[abracky]

Storied U.S. Steel to be acquired for more than $14 billion by Nippon Steel

The Associated Press

December 18, 2023 5:55 AM

https://www.mprnews.org/story/2023/12/18/storied-us-steel-to-be-acquired-for-more-than-14-billion-by-nippon-steel

[abracky]

Cleveland-Cliffs Inc. (NYSE:CLF) Given Consensus Rating of "Moderate Buy" by Analysts

https://www.marketbeat.com/instant-alerts/nyse-clf-consensus-analyst-rating-2023-12-17/

[abracky]

I agree.

[DewDiligence]

I've been expecting that CLF would have to pay around $40/sh (in cash + stock) to acquire X. I still think CLF is the only serious contender due to its unconditional support from the USW.

[abracky]

An Intrinsic Calculation For Cleveland-Cliffs Inc. (NYSE:CLF) Suggests It's 50% Undervalued



https://finance.yahoo.com/news/intrinsic-calculation-cleveland-cliffs-inc-111536444.html

[abracky]

Cleveland-Cliffs Stock Scores RS Rating Upgrade; Hits Key Benchmark



https://www.investors.com/news/cleveland-cliffs-scores-relative-strength-rating-upgrade-hits-key-benchmark/

[abracky]

https://finance.yahoo.com/news/intrinsic-calculation-cleveland-cliffs-inc-111536444.html

[abracky]

https://www.wpxi.com/news/local/us-steel-stock-soars-company-reportedly-nears-decision/TIUXHMVRCNAPDC5YGRYYNQZ37U/

[abracky]

https://finance.yahoo.com/video/us-steel-receives-several-bids-154913559.html

[abracky]

https://www.investors.com/news/cleveland-cliffs-scores-relative-strength-rating-upgrade-hits-key-benchmark/

[abracky]

https://invezz.com/news/2023/12/13/u-s-steel-receives-over-40-a-share-bids/

[abracky]

https://www.msn.com/en-us/money/markets/us-steel-received-multiple-bids-in-excess-of-40-a-share-sources-say/ar-AA1lrL7q

[abracky]

https://www.minnpost.com/other-nonprofit-media/2023/12/minnesota-taconite-mines-explore-new-technology-to-reduce-energy-water-use/

[Yooperman]

Things still look good at the TIlden, don't know it doesn't start going up.

[abracky]

https://www.msn.com/en-us/news/us/ymca-of-north-central-ohio-to-break-ground-on-sports-center-in-june-2024/ar-AA1leJCY

[abracky]

$1100.00 per ton.



https://finance.yahoo.com/news/cleveland-cliffs-announces-price-increase-131600959.html

[abracky]

Cramer recommended buying Cleveland-Cliffs Inc. (NYSE:CLF). "It’s really well-run," he noted.

https://markets.businessinsider.com/news/stocks/wait-for-a-pullback-jim-cramer-on-this-materials-stock-up-35-over-past-month-1032874505

[abracky]

https://www.brown.senate.gov/newsroom/press/release/brown-tours-cleveland-cliffs-weirton-tin-mill-with-ohio-workers-union-leadership

[abracky]

https://simplywall.st/stocks/us/materials/nyse-clf/cleveland-cliffs/news/cleveland-cliffs-insiders-placed-bullish-bets-worth-us188m

[abracky]

https://www.investors.com/news/stock-upgrades-cleveland-cliffs-shows-rising-relative-strength-2/

[abracky]

https://www.msn.com/en-us/money/markets/cleveland-cliffs-stock-shows-rising-relative-strength-upgrade/ar-AA1kZ4Jw

[abracky]

‘I Want Everything.’ The Pugnacious, Arm-Twisting CEO

Lourenco Goncalves used an iron ore company to become one of the US’s largest steelmakers; now he’s trying to buy U.S. Steel.



Lourenco Goncalves. DAVID JUNKIN, RAWPIXEL

By Bob Tita

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Dec. 1, 2023 10:00 am ET

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Veteran Brazilian steel executive Lourenco Goncalves has a booming voice. He’s used it to demand customers buy more steel and to dress down analysts who’ve dared to critique his company’s performance. In the past three years, he’s shouted his way to the top of the U.S. steel industry. 

Goncalves, 65, is on the precipice of the boldest move of his career: acquiring 122-year-old United States Steel. If he prevails, the deal would reshape the U.S. steel industry, making 

Cleveland-Cliffs CLF 6.41%increase; green up pointing triangle

—an iron ore mining company just a few years ago—the largest domestic steelmaker by volume and the 10th largest in the world. 

Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Already a WSJ subscriber? Sign in

[abracky]

https://www.stltoday.com/news/local/business/u-s-steel-closes-granite-city-furnace-indefinitely-warns-1-000-of-layoffs/article_ab640c26-8e3a-11ee-bb7f-47845afb44c9.html

[abracky]

Conclusion

In summary, Cleveland-Cliffs Inc (CLF) has had a better performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

https://newsheater.com/2023/11/27/analyzing-the-price-to-earnings-ratio-of-cleveland-cliffs-inc-clf/

[abracky]

https://seekingalpha.com/article/4654240-cleveland-cliffs-stock-looks-set-for-strong-q4-2023-fy-2024

[abracky]

Investor's Business DailyInvestor's Business DailyFREE - In Google Play


Cleveland-Cliffs Stock Earns Relative Strength Upgrade; Ups Steel Prices



INVESTOR'S BUSINESS DAILY and JULIE MAK

 

03:08 PM ET 11/17/2023

On Friday, Cleveland-Cliffs (CLF) stock earned an upgrade to its Relative Strength (RS) Rating, from 78 to 83. The steel producer announced last week it's raising prices again for all carbon hot rolled, cold rolled and coated steel products. The base price for hot rolled steel is now $1,000 per net ton.


Is Cleveland-Cliffs Stock A Buy?

While it's not currently an ideal time to jump in, see if the steel producer stock manages to form a chart pattern and break out. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips.
 

Top and bottom line growth moved higher in the company's most recent quarter. Earnings were up 86%, compared to -48% in the prior report. Revenue increased from -6% to -1%.
Cleveland-Cliffs stock holds the No. 6 rank among its peers in the Steel-Producers industry group. Grupo Simec ADR (SIM) and TERNIUM ADR (TX) are also among the group's highest-rated stocks.



RELATED NEWS


Steel Producer Cleveland-Cliffs Stock Climbs Into Higher RS Rating Level

11/02/2023 Cleveland-Cliffs shows rising price performance, earning an upgrade to its...

[abracky]

https://finance.yahoo.com/news/united-states-steel-corporation-nyse-134133677.html

[abracky]

Cleveland-Cliffs Announces Price Increase for Hot Rolled, Cold Rolled and Coated Steel Products

Source: Business Wire
Cleveland-Cliffs Inc. (NYSE: CLF) today announced that it is increasing current spot market base prices for all carbon hot rolled, cold rolled and coated steel products, effective immediately with all new orders. Cliffs’ minimum base price for hot rolled steel is now $1,000 per net ton.
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs also is the largest manufacturer of iron ore pellets in North America. The Company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. Cleveland-Cliffs is the largest supplier of steel to the automotive industry in North America and serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 27,000 people across its operations in the United States and Canada.
?
View source version on businesswire.com: https://www.businesswire.com/news/home/20231107837936/en/
MEDIA CONTACT:
Patricia Persico
Senior Director, Corporate Communications
[phone]
INVESTOR CONTACT:
James Kerr
Manager, Investor Relations
[phone]

[abracky]

https://marketingsentinel.com/2023/11/06/cleveland-cliffs-inc-why-investors-shouldnt-get-rid-of-clf-stock-in-2023/

[abracky]

Analysts’ Opinion of CLF

Many brokerage firms have already submitted their reports for CLF stocks, with Citigroup repeating the rating for CLF by listing it as a “Buy.” The predicted price for CLF in the upcoming period, according to Citigroup is $22 based on the research report published on September 25, 2023 of the current year 2023

https://newsheater.com/2023/11/06/trading-update-cleveland-cliffs-inc-clf-stock-endures-3-72-monthly-volatility/

[abracky]

https://www.steelguru.com/steel/hydrogen-hub-cleveland-cliffs-new-venture

[abracky]

https://www.investors.com/ibd-data-stories/stocks-with-rising-relative-price-strength-cleveland-cliffs/

[abracky]

https://finance.yahoo.com/news/automakers-oppose-cleveland-cliffs-push-185034901.html

[abracky]

https://www.nasdaq.com/articles/cleveland-cliffs-clf-shares-cross-above-200-dma-0

[abracky]

Cleveland-Cliffs Announces Price Increase for Hot Rolled, Cold Rolled and Coated Steel Products

Source: Business Wire
Cleveland-Cliffs Inc. (NYSE: CLF) today announced that it is increasing current spot market base prices for all carbon hot rolled, cold rolled and coated steel products, effective immediately with all new orders. Cliffs’ minimum base price for hot rolled steel is now $900 per net ton.
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs also is the largest manufacturer of iron ore pellets in North America. The Company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. Cleveland-Cliffs is the largest supplier of steel to the automotive industry in North America and serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 27,000 people across its operations in the United States and Canada.
?
View source version on businesswire.com: https://www.businesswire.com/news/home/20231031380335/en/
MEDIA CONTACT:
Patricia Persico
Senior Director, Corporate Communications
[phone]

INVESTOR CONTACT:
James Kerr
Manager, Investor Relations
[phone]