The Rising Influence of Rising Affluence

[go seek]

Nastier... Perhaps, but as you stated a helluva a lot of nasty has befallen CLF. Keep in mind 75% of CLF's IO production is @ less than $70 / ton. And half of their production is tied to long term contracts in the US. CLF has shown a profit in all but one quarter in the past 3 years. I expect CLF may earn 70 cents / share in the 2nd quarter. Granted if I had it to do over again I wouldn't have opened a long position in CLF. But who wouldn't say the same at this point in time. The question is... Is now a good time to sell CLF, when perhaps most of the bad news is already in the stock price. Sentiment towards CLF is decidedly negative. Yet there are some that are buying... SAC Capital, Blackrock (owns 10% of CLF) and Gabelli Funds are notable. It seems that for every analyst that is bearish CLF there's another that is bullish. It will be interesting to see the result of the RIO Canadian IO sale, if and when it occurs. So much depends on IO prices going forward.... This is where the rubber meets the road. Unless IO prices crash... CLF should be able to grow (complete P2 at Bloom Lake) and be competitive in the seaborne market. Any suggestions as to what one would move into upon selling CLF now... to provide a more secure return is welcome. VALE and other miners have their own unique risks.

Regards,