The Rising Influence of Rising Affluence

[DewDiligence]

i'm tempted to sell some hes and buy more clf with the proceeds

Well, as noted in #msg-83942559, what is happening to HES now could easily happen to CLF at some point. Institutional prospective buyers know that CLF has some fine assets, dubious management, and the potential to trade at $100+/sh in the next commodity up-cycle. The giant mining companies (BHP, RIO, VALE) know this too, and there would be few if any antitrust issues if one of them were to acquire CLF. Moreover, as compared to HES (which has the mindset of a family-owned company), CLF has a better chance of being acquired in a friendly takeover.

Still, I don’t think selling HES to add CLF is a wise trade because HES has more room to run, IMO, and CLF probably needs at last one solid quarter with no execution issues to get out of the penalty box and participate in the upturn in iron-ore prices since last fall. Why not use an alternative funding source to add to your CLF position?