Replies to post #3330 on Cleveland Cliffs Inc (CLF)

[Nebuchadnezzar]

great news great results yet wall street still hates this name.

cannot wait to see all this $$$$$$$ flow back into the business and my pockets. :)

this is going to $10-$12 some time in 2018

[DewDiligence]

CLF will receive ~$300M of cumulative cash refunds from the IRS during the next six years due to elimination of the corporate AMT in the US tax code, according to today’s CC.

CLF's tax rate going forward will be 0%, thanks to substantial NOLs that are now fully usuable as offsets to income.

[sts66]

Didn't take long for the exuberance to dissipate - went as low as $8.31 - perhaps shorts pile on after the opening spike? Volume is MASSIVE - almost 20M in the first 80 mins of trading vs. avg. volume of 11.6M/day.

[DewDiligence]

(Correction)—CLF will receive ~$250M of cash refunds from the IRS during 2018-2022 (inclusive) as follows:

 2018:  $10M 
 2019: $120M 
 2020:  $60M 
 2021:  $30M 
 2022:  $30M 

These cash refunds stem from the elimination of the corporate AMT in the recently enacted US tax bill. (Source: 4Q17 CC.)

[DewDiligence]

CLF 1Q18 results:

https://finance.yahoo.com/news/cleveland-cliffs-inc-reports-first-120000249.html

Due to better than anticipated sales in 1Q18, CLF raised its full-year USIO sales guidance to 20.5MT (from the prior guidance of 20.0MT).

1Q18 revenue per tonne, gross margin, and EBITDA exceeded prior expectations, and the same is anticipated for the full year.

The stock is +7% as I’m typing.