The Rising Influence of Rising Affluence

[DewDiligence]

WSJ blogger, James Altucher likes CLF:

http://blogs.wsj.com/financial-adviser/2010/07/16/stock-with-low-pes-that-could-double-from-here/

Cliff Natural Resources: This company has been mining for iron ore since 1847. The company will probably earn $10 a share this year, putting it at a P/E of about 4.8 right now.

The stock price has fallen off of a cliff since April. There were fears that the Chinese economy was softening and China would stop buying iron. And yes, China is softening: from 11% growth to “only” 9-10% growth. Horrors! The company has gone from 76 to 48 in the past 3 months on these fears.

Altucher’s comments are spot-on, but he needs to learn the company’s name: it’s Cliffs (plural), not Cliff.