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Cleveland-Cliffs Inc. (CLF)

NYSE - Nasdaq Real-time price. Currency in USD
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15.68+0.31 (+1.98%)
As of 02:24PM EDT. Market open.
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  • S
    Never seen CNBC spend as much time on one stock! Turn around?
  • T
    Regarding my previous comment about fighting the fed, I am making an exception for CLF. I just bought in first time. GLTA especially me!
  • v
    CLF will be back over $20.
    Forward PE of 4 is just toooooo cheap
  • W
    Working Stock
    2nd Q 2022 can now go to the financial books. Cliffs shareholders need to wait, what, three + weeks to hear Q results? Obviously, Cliffs pps is less than half of that when Q1 results were reported. LG and his team have a lot of explaining to do. Shareholders approved an executive compensation plan when pps was in the $30s. Yes, there is much explaining that needs to be done.
  • D
    Halftime report, Pete, Farmer Jim love Cliffs!! Brian also singing praises.
  • J
    CLF currently has market cap of roughly $8 billion and about $5 billion in debt. Roughly $3 billion in FCF will be generated for 2Q thru 4Q. What should LG do with the cash? Interest rates have been trending higher, and CLF doesn't have much debt due any time soon. Does he pay down a lot of debt, or does he buy the stock back knowing that the odds of a recession appear to be increasing by the day, HRC prices continue to trend lower, competition is adding a lot of additional capacity, and CLF stock price looks like a falling knife? Or does he just sit on the cash anticipating that CLF's stock price could easily get back down to around $10 to $12 and he could potentially buy back roughly 40% of the outstanding shares with the ~$3 billion of cash CLF will have at year end. I suspect CLF is going to announce that CLF's board has approved a ~$1 billion stock buy back program when 2Q earnings are released along with a new dividend that yields around 1%. I don't think they'll be trying to eliminate most of their debt over the next 12 months like many investors are expecting. Maybe $1 to $1.5 billion of debt reduction before year-end. Wish they would get their debt down to around $2 billion before year-end, but I don't think LG will be able to resist buying back a lot of stock because he believes the current stock price is significantly below FMV.
  • S
    finally CLF buyers back
  • s
    I realize there are mixed opinions on it, but I sure hope CLF is paying down debt. GLTA !!
  • a
    Heavy buying on upticks.
  • A
    HRC has plummeted. I know that for this year, it does not matter as much. LG has signed contracts with HRC averaging $1445 that will make for Q2, Q3 and Q4 being some of the best quarters every for CLF. However, the market is not factoring these quarters in. They are factoring in next year when HRC contracts for CLF may be under $1,000. I’m well aware they still make very good money at $1,000, even $900 is ok, but the cash cow seems to be coming to an end for the time being. I sure hope LG takes these next 3 quarters and just blows out a substantial portion of debt. Right now it’s Debt, Debt, Debt. He should have been working harder on this last year quite honestly.
  • R
    I agree we need to pay down debt but I think they should spend 450 mm to take out 30 mm shares. Should have another close to billion for debt this quarter assuming working capital stayed flat or generated a bit of cash
  • m
    money man
    LG must have bought some shares today. Extra 5 million shares traded and bounced off $14.75
  • S
    Expect CLF to be a final trade mention!
  • T
    CLF should use 100% of their HBI in their blast furnaces. CLF should reopen the shuttered IH #4 blast furnace to produce granulated pig iron like X is doing in Granite City. Use Granulated Pig Iron in their Electric Arc Furnaces. EAF operators prefer to use GPI to blend with scrap and other metallics due to its high Fe and energy (C, Si) content, low gangue and chemical purity, rapid melting properties and the easy automated handling, being top-feed into the EAF. GPI is a source of clean iron units that can be used to supplement and enhance the EAFs scrap charge.
  • A
    If CLF isn't buying its own shares at this level, I wouldn't want anything to do with it!
  • w
    Is the recession now priced in?
  • B
    This is one of the profitable companies out there during recession time. Offcourse demand slowdown can weigh on their sales. But since earning is in another 3 weeks, which is 1 week before Q2 GDP print, i think we can have a run. Beyond that once market prices in recession, things will settle down i believe. Gl
  • G
    in at 14.92...hopefully caught the falling knife correctly?!
  • D
    As a matter of principle, any company with ANY long-term debt should NOT be paying dividends or buying its own stock
  • B
    6.29:: Quickly, I want to mention that we're in an unusual set of circumstances where the macro picture is negative but the street believe the micro is positive as consumer spending is strong + employment numbers overall is strong. I believe there's a bifurcation for the consumer where the haves are doing better than have nots; so the overall micro picture is misleading. Back to CLF; LG has done a wonderful job managing this vertically aligned business model. People must realize since 2019 we were undergoing a transformational process. Think of Apple computer as a company getting into mobile cellular division and producing their own chips at the same time. That's a difficult feat to accomplish. Since the previous merger of ArcelorMittal it became a game changer. Right now, the market movement is based on sentiment devoid of actual fundamentals. Since Q1'22 earnings, the stock declined after a pop bc the market was still unsure with China, Inflation & other narrative issues. CLF is in a unique position as they have pricing power, not to mention they have clients held to longterm contracts. So the pricing elasticity of HRC prices on a monthly basis technically doesn't have much effect if you think about it. If HRC jumps back to all time peaks, then most likely CLF takes advantage but it won't be a hindrance as one might think. This is a huge buying opportunity. It may decline again before next earnings call but it'll bounce back. Why? Well remember when recently Farmer Jim of CNBC shared he had a convo w/ LG and mentioned that they're doing spectacular altho HRC contracts were high earlier in the yr. CLF is going to shatter Q2'22 earnings next month but thats not the issue. Look at Nike, they've done solid the other day in earnings but everyone is acutely focused on Inflation or Stagflation. No matter how well you performed revenue wise or estimates, you will get anchored down by sentiment. But that doesn't mean CLF cant overcome. LG needs to focus on deleveraging its debt. Quickly. And they need to add a dividend structure. They have to make this stock "attractive" so Jim Cramer and his charitable trust of thieves can market CLF. Its all about narrative. So min debt + dividend will make CLF move the SP sharply. In terms of the macros, it will turnaround but it'll last for another 6-12 months. My reco, stay the course. Add more and remain patient.