Replies to post #6465 on The Rising Influence of Rising Affluence

[go seek]

:-) been there, done that! As I expect most here have.
My concern with CLF is the dividend. I think they over-reached on the last dividend raise. What effect will a dividend cut have... if / when it comes? Also in my opinion the overall market is overbought (at least for the short term)

In the end... No guts, No glory :-)

An aside... I have to laugh when I read all the ill names DD is honored with on Yahoo MB... ridiculous / some folks have beans for brains ;-)

[DewDiligence]

i'm tempted to sell some hes and buy more clf with the proceeds

Well, as noted in #msg-83942559, what is happening to HES now could easily happen to CLF at some point. Institutional prospective buyers know that CLF has some fine assets, dubious management, and the potential to trade at $100+/sh in the next commodity up-cycle. The giant mining companies (BHP, RIO, VALE) know this too, and there would be few if any antitrust issues if one of them were to acquire CLF. Moreover, as compared to HES (which has the mindset of a family-owned company), CLF has a better chance of being acquired in a friendly takeover.

Still, I don’t think selling HES to add CLF is a wise trade because HES has more room to run, IMO, and CLF probably needs at last one solid quarter with no execution issues to get out of the penalty box and participate in the upturn in iron-ore prices since last fall. Why not use an alternative funding source to add to your CLF position?

[DewDiligence]

Nice to see CLF holding its own on a down day for the broad market. Maybe this is a harbinger that the company will soon emerge from the penalty box.