This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

What To Watch For Next From Cliffs Natural Resources

Chris Lau, Kapitall: Analysts have begun upgrading the miner Cliffs Natural Resources, but does this mean the firm has rebounded?

Miners and those who rely on them for resources have experienced significant volatility this year. From swings in the price of gold to political change in resource-rich Australia, mining stocks can be easily influenced by a variety of factors beyond their control.

[Read more from Kapitall: Small Island, Big Economy: Investing in UK Stocks]

Take the price of iron. Downward pressure on iron ore prices resumed in early September – with rates at  $137.10 for Tianjin port deliveries earlier this month - jeopardizing the rebound of mines and miners alike. Despite the setback, the high inventory for the metal is declining steadily, thanks in part to China.

At a macroeconomic level, basic miners could benefit from the insistence of monetary authorities in the United States to continue with stimulus efforts. Cliffs Natural Resources ( CLF ) is one of many companies investors could add to their watch list.

High bearishness

Short float is a whopping 32.3% on shares of Cliffs. Bears are betting that the costs for Bloom Lake Phase II and operations in Wabush are not under enough constraint. Another extended drop in iron ore prices could put pressure on the company’s balance sheet. And debt can also be seen as a worry. Long term debt rose from $525 million in fiscal 2009 to $3.96 billion by fiscal 2012. But Cliffs did manage to reduce its debt to $3.3 billion in the quarter ending June 2013.

Comparison

Cliffs is much smaller than peers like  Vale ( VALE ) and BHP Billiton ( BHP ) in terms of market capitalization. Vale wants restrictions in China for supersized cargo ships lightened. Investment firm JPMorgan set a $25 price target for the company citing cost-cutting and higher iron ore prices as reasons to be positive.

Click on the interactive chart below to see data over time. Sourced from Zacks Investment Research. 

<p>Your browser does not support iframes.</p>

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,873.78 -102.53 -0.57%
S&P 500 2,079.31 -6.93 -0.33%
NASDAQ 4,928.79 -18.6510 -0.38%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs