Replies to post #3617 on Cleveland Cliffs Inc (CLF)

[sts66]

Man, APIO sucked the wind out of Q1 revs - cost them $124M to sell $59M worth of ore?!? Two things from their PR have me asking questions:

Cleveland-Cliffs Inc. Reports First-Quarter 2018 Results

1. It doesn't appear that much of the APIO closing costs of $120M-$140M were charged in Q1, so Q2 could see an even bigger negative EPS. PR says $47M loss from APIO, but $39M of that was COGS vs. revenues, meaning only $8M in closing costs have been taken so far. Still, thank god they're closing that white elephant down!

2. I thought CLF was getting a return of AMT overcharges from the IRS worth ~ $250M, but the PR says they lost money because of some kind of AMT charge in Q1 - WTF?

In addition, the Company recorded $16 million, or $0.05 per share, in income tax expense primarily related to a recent IRS notice regarding sequestration of refundable AMT credits.

Market seemed to like the news, USIO guidance soared to $102-$107 for 2018, another 500k long tons expected (max capacity), but HBI plant was delayed:

the Toledo HBI Project spend expectation was reduced by $25 million to $225 million due to further development and refined timing of the project spending plan

Damn, I expected the pps to drop on this report so I could avg. down, but since APIO charge were delayed it didn't happen - question is does it occur in Q2 when ~ $130M would mean about a -45 cents EPS hit?

[Nebuchadnezzar]

CLF-ICHIMOKU CLOUDS show that this could actually be the start of true bottom $5.5 and major support around $6.75 and move higher toward $9-9.25




[img]www.stockcharts.com/c-sc/sc?s=CLF&p=D&yr=3&mn=0&dy=0&i=p83726754974&r=1524271945417

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[DewDiligence]

CLF independent director bought $37K of stock today on open market:

https://www.sec.gov/Archives/edgar/data/764065/000076406518000106/xslF345X03/wf-form4_152484090329295.xml

[DewDiligence]

CLF sells APIO business—net closing costs $65-75M less than prior guidance:

https://finance.yahoo.com/news/cleveland-cliffs-inc-agrees-sell-110000201.html

[DewDiligence]

CLF 2Q18 results:

https://finance.yahoo.com/news/cleveland-cliffs-inc-reports-second-120000932.html

The stock is +5% in PM trading. CC at 10am ET.