The Rising Influence of Rising Affluence

[DewDiligence]

CLF CC post-mortem: Management squandered whatever remaining credibility it had by scheduling the CC before the announced financing transactions closed and thereby citing SEC regulations to avoid talking about any details of the transactions. As a result, the CC focused on mine-operation issues that were largely beside the point from a shareholder’s perspective.

I’m holding my shares because: i) the fundamentals of the iron-ore industry remain fairly strong; and ii) at some point, CLF is likely to get a buyout offer or attention from an activist shareholder (as occurred with HES) who can start a proxy fight to remove the steep discount investors are applying to CLF’s valuation to account for its inept management.

Feedback welcome.