Replies to post #7417 on Cleveland Cliffs Inc (CLF)

[abracky]

Heck of a scam shorter.

Cleveland-Cliffs (CLF)


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Another interesting name to consider among steel stocks is Cleveland-Cliffs. The company is the largest flat-rolled steel producer in North America after the acquisition of AK Steel and ArcelorMittal USA.
It’s worth noting that 29% of the end market for the company’s steel is from the automobile sector. The company’s steel is already being used in electric vehicle models.
Additionally, 25% of steel sales is towards the end market of manufacturing and infrastructure. This is another potential high-growth segment for the company.
The company’s steel also finds application in the modern electricity grid and sustainable energy. Therefore, with a focus on infrastructure and clean energy, the company is well-positioned for long-term growth.
For Q2 2021, the company reported revenue of $5.0 billion and adjusted EBITDA of $1.4 billion. Further, the company has guided for EBITDA of $5.5 billion for 2021. The company is therefore positioned for robust cash flows. One of the objectives is to deleverage. As credit metrics improve, the stock is positioned for re-rating.
Another factor to like about Cleveland-Cliffs is the fact that the company is vertically integrated in steel-making raw materials. This is likely to help in boosting overall margins.