Replies to post #6532 on The Rising Influence of Rising Affluence

[DewDiligence]

Transcript of CLF 4Q12 CC:

http://seekingalpha.com/article/1181191-cliffs-natural-resources-ceo-discusses-q4-2012-results-earnings-call-transcript

[Democritus_of_Abdera]

Re: CLF Management Credibility....

For what its worth, I share your negative sentiment concerning CLF management's actions... At this time I consider Joseph Carrabba's public announcements unreliable. I still have some faith in the new CFO, Terrance Paradie, but am wary as he might not be free to deviate far from Carrabba's viewpoint.

I was prepared for the dividend cut, albeit I did not expect it to be more than 50%.... I consider the attainment of a low $70/ton range for the year end Bloom lake cash cost as acceptable. But the stock dilution was a total surprise, and a negative one at that.

[dewophile]

i sold out
not so much because of the poor operational performance but bc of deceptive practices from managment
i agree the IO industry is strong so i am holding my vale shares

[go seek]

CLF is likely to get a buyout offer or attention from an activist shareholder (as occurred with HES) who can start a proxy fight to remove the steep discount investors are applying to CLF’s valuation to account for its inept management.

It appears shareholder activism and M&A are on the rise... given flood of recent actions on Wall Street... The latest 'misstep' @ CLF has increased the spotlight on the company. (hello Carl / Warren)

The Natural Resources tailwind / demand remains... I wonder how much the shale energy revolution will play into hands of North America iron ore companies. Also the high short interest in CLF shares... @ some point these shares will need to be covered. Seems with all the recent bad news... now would be a good time to buy to cover.