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I understand, so why would you show his timely purchases from that time period? Cliffs is only alive because President 1 loved Tariffs and President 2 loves the Unions.
CLF—The initial several years of LG’s tenure was devoted to cleaning up the mess created by the old management team: terminating the chromite project, shutting down the money-losing Quebec mines, selling the Australian mines before they ran out of ore, and getting out of the coal business. If LG had not been hired in 2014, CLF would almost certainly have gone bankrupt in fairly short order.
In short, you can’t properly evaluate what LG has done to enhance shareholder value by using 2014 as a starting point.
CLF—To fully grasp value proposition of this stock, you have to recognize how monomaniacal the CEO, Lourenco Goncalves is at generating value for shareholders. LG owns ~$120M of CLF stock, and he has regularly purchased shares on the open market or held shares after exercising options.*
The single sentence in #msg-174061258 (in reply to jbog’s post of a disparaging WSJ piece) encapsulates my view of LG’s leadership.
*Form-4 filings:
#msg-171786873
#msg-165544918
#msg-162362326
#msg-154279025
#msg-149308747
#msg-134694391
#msg-131068048
#msg-122513056
#msg-114015543
CLF- I find it to be very bullish for a company when a short seller changes their mind on a stock from sell to buy. GLJ Research is a small firm that makes short and long recommendations (mostly short from what I can see on their website.) Apparently Barron's took note and had this piece yesterday:
Cleveland-Cliffs Gets Double Upgraded as Analyst Looks to Rotate ‘Out of Tech Into Value’
Xiaomi in the EV business
https://www.cnn.com/2024/03/28/business/chinas-xiaomi-ev-launch-intl-hnk/index.html
China is going to enable mass adoption of EV's outside of the EU and USA
I forgot the smiley for_the_two_comments you cite.
For CLF the main source of incremental business cited in the WSJ article consists of transformers and related hardware to upgrade the US electrical grid.
Somebody has to provide steel for Tesla cyber trucks…
Baltimore’s bridge collapse is global shipping’s smallest problem
https://www.msn.com/en-us/news/other/baltimore-s-bridge-collapse-is-global-shipping-s-smallest-problem/ar-BB1kCE42
Key Bridge collapse will disrupt Car_coal_&_tofu_supply
[Oh no! A tofu shortage? ] It will also disrupt supply of tractors, construction equipment, and trucks.
https://www.washingtonpost.com/business/2024/03/27/baltimore-port-economy-disruption-bridge-collapse/
Here's how shredded wind turbine blades can be used to make cement, and FUEL
(Skeptical) WSJ piece_cites CLF as_major beneficiary of EV transition:
https://www.wsj.com/articles/can-we-power-the-epas-ev-fantasy-electrical-grid-energy-vehicles-a786d535
CATL and BYD are developing improved battery tech to increase energy density and dramatically improve charging times. Assuming these new batteries are available in 2024 models it would make EV and hybrids more attractive. Potentially an interesting development.
Surprised at todays lackluster move for Clf after a .5 billion dollar grant.
This scenario is more likely in a dual direction donning/doffing scenario, but it can also happen in a single pass facility if the earring backing is dislodged in the gowning room upon donning.
Surgical rooms are not very clean, at least not by particle count, nor by bioaerosol sampling. Surgery rooms do not have to be perfect for most patients. However, sterile drug manufacturing, or chip manufacturing require much cleaner environments. The problem with earrings is that they get caught it the hair covering and the earring backing pulls off, then falls through the inside of the tyvek suit and inevitably ends up either thrown out with the gowning or on the floor of the gowning room where it can be picked up by the sole of the sterile boot and transferred to the manufacturing floor.
I don’t know that earrings would be bad, but make up definitely so.
In addition, at least in a medical setting, long finger nails can harbor bacteria. Having them cut through the sterile gloves clearly breaches the sterile environment.
I know someone who worked at NASA and they think the success of their satellite was heavily dependent on the diligence of the quality assurance people who made sure that everyone followed the proper decontamination procedures before they entered the clean room where the satellite was being built. Every speck of dust or whatever would stay with it throughout orbit and could interfere with a successful mission.
Surgeons are supposed to count the number of instruments they bring into an operating room and make sure it matches what they take out in order to avoid the occasional occurrence of leaving one stitched up inside the patient.
Received push back from director because I insisted that makeup, earrings not be worn in the cleanroom, and that fingernails be short enough so that they could not breach the nitrile gloves. Can't believe the way caution is thrown to the door in the name of weakness.
What skill set is needed to work at a chip factory?
Boeing’s problems may have started when they went from being a premier engineering company to a more business bottom line oriented company.
Some of their problems happened when they opened a manufacturing plant in South Carolina, where there was very little of the safety culture mentality associated with manufacturing in Seattle.
Tools and metal shards were left inside the wings, where they could potentially rupture the fuel tanks or cause other problems.
Given that people have to follow strict clean room procedures when manufacturing chips, is the U.S. work force really set up to do that? I live near a high school, and, post Covid, at least 50 to 60 or more kids walk away from the school every single day, getting zero free education. I don’t know what they do in their spare time, but I see them waiting at bus stops or walking to the local malls or fast food joints. I seriously doubt any of them would follow the procedures needed to manufacture reliable chips.
Shorting requires finding shares to borrow, which may be tough to do at the outset.
Maybe I'm too skeptical but the AI hype seems to have a life of it's own......with a lot of parallels to 90's run-up. I'm sure AI is real and will be transformative, but the major players market values have ballooned and continue to balloon with every press release. When virtually every hardware and software company claim to have, and are growing their presence in AI, my BS meter starts to come alive. Will the AI story and value unfold quickly or are we getting ahead of ourselves and the payback and value will take longer then we currently believe? Just musing.
Trump: $3.5 Billion Windfall From Truth Social IPO?
https://www.msn.com/en-us/money/other/trump-is-in-line-for-a-3-5-billion-windfall-from-his-stake-in-truth-social/ar-BB1kf6gx
VW Buzz - I think ultimately this will be vehicle for me, this is it if family member can be convinced that VW DNA has changed for good. VW software also has to pass the test given past issues.
https://jalopnik.com/volkswagen-s-id-buzz-gtx-is-the-hot-electric-van-we-all-1851354750
DIS proxy battle: Ads on NPR & Internet
Very weird to hear ads about an upcoming proxy battle advertised on the radio (my local national public radio station) and seeing it in pop-up ads…
Somebody is spending a lot of money, far more than the usual, “the board supports the following…” on proxy ballots.
https://finance.yahoo.com/video/could-swing-vote-disney-proxy-212708762.html
This is where the government is needed but of course they'll screw the pooch.
I would suggest that you not interpret iHub's "like" feature (positive or negative) as a measurement of a specific post's contribution to the board.
Translation—Lourenco Goncalves will play hardball to procure the best outcome for CLF shareholders. It is not his responsibility to push for the best outcome for the country as a whole.
Again...Globalism is dead. Chips/Steel/Autos, to name a few, the end result will be higher prices and less efficiency. We are entering a new period of protectionism, this time on steroids.
UAW says workers at VW Tennessee plant file for union election
https://finance.yahoo.com/news/1-uaw-says-workers-vw-174159223.html
Steel-Making in the Swamp
Corporate and union rent-seeking in action: Cleveland-Cliffs’s CEO brags about his sway over Joe Biden.
By The Editorial Board
March 17, 2024 4:45 pm ET
President Biden and the self-styled populists in Congress claim to represent the common man, but what they actually stand for is corporate and union rent-seeking. Cleveland-Cliffs CEO Lourenco Goncalves last week exposed the contradiction as he crowed about killing Nippon Steel’s bid to buy U.S. Steel.
“I’m not surprised. We have been in total contact with the administration, so I know what’s going on,” Mr. Goncalves boasted to Bloomberg News after Mr. Biden on Thursday issued a statement opposing Nippon Steel’s $14.1 billion acquisition. It’s nice if you know the king.
Mr. Goncalves added: “The contact is about making it abundantly clear between me and [United Steelworkers union president] Dave McCall that the only buyer the union accepts for the union-represented assets is Cleveland-Cliffs.” The United Steelworkers, which represents workers at Cleveland-Cliffs and U.S. Steel, has backed a merger between the American steel giants.
Cleveland-Cliffs lost a bidding war for U.S. Steel to Nippon Steel last summer. Nippon Steel offered roughly double Cleveland-Cliffs’s bid and promised to inject U.S. Steel with $1.4 billion in capital to upgrade factories. Nippon has also pledged to honor collective-bargaining agreements. Its takeover would make U.S. Steel more efficient and globally competitive.
Mr. Goncalves and the United Steelworkers don’t share those goals. They want to create a U.S. steel-making monopoly that is protected by tariffs from foreign competition. A Cleveland-Cliffs-U.S. Steel merger would control 100% of blast furnace production in the U.S. and 65% to 90% of domestic steel used in vehicles.
Cleveland-Cliffs could then raise prices, and the union could negotiate richer wages and benefits, without worrying about competition. U.S. manufacturers and consumers would be harmed, but who cares about them? Not Mr. Biden or the Members of Congress opposing the Nippon deal, including Republican Sens. J.D. Vance, Josh Hawley and Marco Rubio. The Biden antitrust cops also seem to have taken a powder on this one.
https://www.wsj.com/articles/cleveland-cliffs-lourenco-goncalves-joe-biden-u-s-steel-nippon-steel-a2c4c7d1?mod=hp_opin_pos_3#cxrecs_s
On March 11th I made known where Detroit's EVs are. https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174015434
They are all over the place, but not affordable, and not wanted. I know that you did not give me the clown face, but really, I make three posts, each one being on topic, one even provided a quote from the article being discussed and I receive a clown face on each and nobody provides recognition otherwise.
Oil Well! I mean, "Oh-well."
True...but on the global competitive scale, the USA & Europe lag far behind China, Korea and Japan. Chinese manufacturers will overtake Japan as the largest exporters of cars; mostly EV. Their dominance will continue to grow. With BYD building production facilities in growing markets they are set to be one of the biggest, if not the biggest producer of EV's and batteries in the world. No doubt Korea and Japan will adapt. What about the USA & Europe? Together they are so far behind in raw material production and battery production that essentially they've already lost the EV and hybrid race. What's left is protectionism leading to higher cost and lower efficiency.
It's a delusional fantasy to believe the USA or Europe can achieve the EV goals without imports, but the political stage is set to stop imports. Without a bevy of sub $30K cars EV's will only be affordable to a portion of the population and I doubt we'll see a lot of low cost EV's coming from Detroit.
At some point, the US will have to modify the definition of an EV to include hybrids. There is no other realistic way to attain the converion goals that have been mandated.
According to Bloomberg the Biden admin. is rolling out emission standards confirming the push to electrify automobiles. If true, the need for expanded growth in production remains intact, but where will the increased production in raw materials and cars come from. Affordability????? We know the raw material answer since the USA is decades behind. Can the USA compete with the likes of BYD, certainly not on price in the domestic manufacturing setting. With BYD expanding production in Brazil, Mexico, Indonesia, Hungary looks like competition will be fierce.
TSLA - cybertruck. Got an email yesterday that I can configure a foundation series order since I am an early reservation holder. My expectation prior to that was that my order won't be ready to be configured until late 2025. I looked at what's on the configuration site and still not interested. Seems to me orders for the foundation series must be running low.
The implicit assumption in IIHS study is that a nanny state is required for the current state of technology for passenger cars. I agree with that assessment. If Google can scale their Waymo technology suite to passenger cars, then IIHS can consider shifting to a non-nanny state. I would probably be inclined to buy a vehicle that has the capability to shock your private parts as an option in ADAS settings. I find myself too complacent at times when using ADAS since they are getting better and better but still need attentiveness.
Globalism is dead.....just lip service.
Can Nuclear Power “Decarbonize” the Oil and Gas Industry?
https://oilprice.com/Energy/Crude-Oil/Can-Nuclear-Power-Decarbonize-the-Oil-and-Gas-Industry.html
By Felicity Bradstock - Mar 13, 2024, 4:00 PM CDT
Oil and gas companies are under pressure to reduce greenhouse gas emissions.
Using clean energy sources like nuclear power to run oil and gas operations can significantly reduce emissions.
Small modular reactors (SMRs) are being developed as a potential solution for providing clean energy to remote oil and gas facilities.
Governments and private companies worldwide have been exploring the idea of reducing emissions from oil operations by using nuclear energy. There is increasing pressure for oil and gas firms to reduce their greenhouse gas emissions to support a global green transition and reduce the effects of climate change on the environment, yet this can be extremely difficult to achieve. Much of the focus has been on retroactive carbon-capture operations, using carbon capture and storage (CCS) technology. Many environmentalists believe that the retroactive approach does not make a meaningful change and that fossil fuel companies must reduce their production rates, as well as decarbonise operations at the source. In response, companies worldwide are exploring the potential for nuclear energy to power operations to reduce the emissions created during production and processing activities.
While there is a plethora of environmental issues related to fossil fuel production, there is significant potential to reduce the greenhouse gas emissions associated with oil and gas operations. Oil and gas production, transport, and processing contribute around 15 percent of all energy-related greenhouse gas emissions worldwide. The use of oil and gas accounts for another 40 percent of emissions. While it is extremely difficult to reduce these emissions, using clean energy sources to power upstream oil and gas facilities could help companies decarbonise some of their activities.
At present, most companies rely on fossil fuels to power upstream operations, such as extracting gas and oil through drilling, pumping, and fracking. Many downstream operations, such as refining and processing, also use fossil fuels. Aline des Cloizeaux, the Director of the International Atomic Energy Agency’s (IAEA) Division of Nuclear Power, stated: “Most oil and gas operations burn fossil fuels to produce the energy needed for their upstream and downstream operations.” She added, “To drive down carbon emissions from these processes, ideally drilling, natural gas liquefaction and refining would be electrified with low carbon sources, such as nuclear.”
Related: Europe’s Secret Weapon In Its Energy War With Russia
Most oil and gas operations are conducted in remote locations, making it difficult to power activities using electricity from the grid. However, there is significant potential to use microreactors (MRs) or small modular reactors (SMRs) to deliver power to the site. While fossil fuel production will still create carbon emissions, the use of nuclear power to fuel operations can help significantly reduce operational emissions and prevent waste. While the MR and SMR industry is in its infancy, many governments and private companies are investing in the acceleration of this technology, with capacity expected to increase significantly by 2030.
One company is taking the next step in using nuclear power to fuel oil and gas operations by signing an agreement to develop the necessary technology. Viaro Energy and newcleo, a clean nuclear technology developer, have signed a memorandum of understanding (MoU) to forge a strategic partnership to decarbonise oil and gas infrastructure using nuclear technology. The MoU provides a strategy for decarbonising Viaro’s oil and gas operations with newcleo’s lead-cooled fast reactor (LFR) technology. Newcleo expects the equipment to be suitable for a range of locations as it is compact and easily transportable. The LFR will be powered using reprocessed spent fuel, produced from existing reactors, to reduce waste.
Stefano Buono, the Chairman and CEO of newcleo, stated: “This is an exciting partnership and demonstrates the potential for newcleo’s technology to support industrial decarbonisation. The transition to net-zero will only be achieved by decarbonising not only the energy, transport and heat sectors but also energy-intensive and ‘hard to abate’ heavy industries.”
Related: Forgotten Gas Reserves Could Be A Gamechanger For European Energy
“Our technology means that, for the first time, nuclear reactors will provide decentralised, baseload, low-carbon energy to customers with enhanced safety and security of supply. Viaro’s pragmatic and forward-looking approach will help them to blaze a trail towards lower-carbon operations in the oil and gas sector and we are delighted to be partnering with them and to provide energy solutions to make their aims a reality,” he added.
The use of the technology is expected to help decarbonise Viaro’s North Sea operations, where the company produces around 30,000 barrels of oil a year. The firm holds non-operated stakes at around 30 offshore assets in the U.K. and the Netherlands. Viajo also announced that it had invested in newcleo, although no more information was given. This year, London-based newcleo is aiming to become one of Europe’s highest-funded start-ups, seeking to raise $1.09 billion.
As the oil and gas industry looks to decarbonise operations in line with rising government pressure and higher consumer expectations, nuclear power could provide the answer. While most fossil fuel production takes place in remote locations, making it difficult to power using clean electricity from the grid, there is significant potential for the rollout of MRs and SMRs to power operations. Although the technology is in its infancy, greater investment in the technology by oil and gas firms could ensure they are some of the first companies to get access to innovative nuclear reactors as they are rolled out.
By Felicity Bradstock for Oilprice.com
Inside the Steel Deal That Has Biden on Edge
Nippon Steel’s bid for U.S. Steel fits the president’s agenda, but rival Cleveland-Cliffs and union have stirred up oppositionL
By Andrew Duehren
When Nippon Steel 5401 -0.58%decrease; red down pointing triangle agreed to buy United States Steel in December, it looked like a victory for the Biden administration’s attempts to revive American manufacturing.
The Japanese giant, whose imports once tormented American steelmakers, would make steel in the U.S. A faded industrial icon, U.S. Steel X -12.77%decrease; red down pointing triangle, would receive an injection of capital and technology. The U.S. and Japan would together take on China’s dominance in the global steel market.
But the $14.1 billion deal has instead become an election-year football. Republican and Democratic lawmakers have called for the Biden administration to use national-security powers to block the deal. Former President Donald Trump has promised to scuttle it if he wins a second term. White House officials are closely scrutinizing it, and President Biden is expected to release a statement soon highlighting his concerns about the deal, according to people familiar with the matter.
Behind the scenes, a company with more bottom-line considerations is helping orchestrate the populist revolt. Ohio-based Cleveland-Cliffs CLF -0.20%decrease; red down pointing triangle had also tried to buy U.S. Steel last year, and now confronts the prospect of a competitor vastly strengthened by Nippon Steel’s deep pockets and close ties to Japanese automakers.
After losing in the boardroom, Lourenco Goncalves, the combative CEO of Cleveland-Cliffs, is trying to kill the deal on Capitol Hill as well as through an unusual alliance with the United Steelworkers union.
In meetings with Republican and Democratic lawmakers, Cleveland-Cliffs staff have amplified union concerns about how Nippon Steel could lay off workers at U.S. Steel plants in Pennsylvania, Indiana and elsewhere, according to people familiar with the matter. During a recent private call with investors, Goncalves appeared to mock the Nippon Steel executives while speaking with what sounded like a Japanese accent, two people who were on the call said. Cleveland-Cliffs didn’t respond to requests for comment.
“A deal is only a done deal when it closes and recent reports make it clear that their announced transaction with Nippon faces a very uncertain path to close,” Goncalves said during a recent earnings call. “So, their saga is not over.”
The guerrilla lobbying campaign is shaping a decision that goes to the heart of Biden’s industrial ambitions. Spiking the deal on national-security grounds could make foreign investors think twice about pouring resources into the U.S. At the same time, steel remains central to the identity, if not the economy, of Pennsylvania—a swing state in November’s election where Biden risks losing support if he greenlights the transaction.
Nippon Steel is fighting back. “We welcome the Administration’s scrutiny of the transaction, as an objective and comprehensive review of this transaction will demonstrate that it strengthens U.S. jobs, competition, and economic and national security,” Nippon and U.S. Steel said in a statement Wednesday.
https://www.wsj.com/business/inside-the-steel-deal-that-has-biden-on-edge-b8dcc44c?mod=hp_lead_pos5
Big Lithium Short Gets ‘Dangerous’ on Lower Supply Outlook
https://finance.yahoo.com/news/big-lithium-short-gets-dangerous-180000239.html
Biden is coming out in opposition to plans to sell US Steel to a Japanese company
https://www.msn.com/en-us/news/politics/biden-is-coming-out-in-opposition-to-plans-to-sell-us-steel-to-a-japanese-company/ar-BB1jSsN6
This opinion piece is an interesting read. I'm half inclined to actually attempt a read of the chips act to see how much "meat" versus political social engineering is present. If the details in this opinion piece are accurate, I can understand why there would be a slow implementation, lots of hoops to jump through and significant added cost. I guess time will tell if those chip fabs materialize. Unfortunately we've been told, we don't have much time.
https://www.cato.org/commentary/social-policy-side-chips#
Note the date written......
Everything including the acronyms. Seems like a word salad article. I have read about what Morris Chang said about the difficulties of building a chip plant here and that was informative.
What are you unclear about?
(CLF)—Chess game between Nippon Steel and USW continues:
https://finance.yahoo.com/news/no-labor-agreement-no-deal-211125908.html
Re: IIHS.org rating of ADAS systems
This just tests how intrusive a nanny the system is, not whether it actually steers the car and brakes and maintains speed appropriately. They would apparently give high marks to a system that shocks your private parts if your attention wanders but and occasionally drives off the road into a tree for amusement.
BYD - Still not ready for prime time. WSJ reports a variety of quality issues the latest being mold. Hyundai when they first started in the US had terrible quality issues in their first decade before getting it right. IMO BYD going through those same growing pains but they are doing it at high volumes so mistakes are going to be costly.
https://www.theverge.com/2024/3/13/24099417/byds-electric-vehicles-are-moldier-than-usual
Interesting that Gold is getting little love from investors as we hit all time highs.
ETF outflows are offset by increased Central Bank purchases and physical OTC market. With an emerging India, jewelry demand there is expected to rebound sharply. Add in a possible weakening dollar and geopolitical turmoil and the cake is baked. $2,600/Oz looks like a good target.
2024 Gold demand
My GROY holding now trades at ~0.68X asset value with cash flow catalysts pending. The comp group trades at 1.1X right now. While I expect some consolidation of physical gold prices and GROY stock price around this $2 level, I like the risk/reward.
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In many nations, a middle class is emerging for the first time in history.
Companies who satisfy the demands of these consumers in a sustainable manner should have bright prospects.
The Rising Influence of Rising Affluence is a forum for investment ideas based on this premise.
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