NEW YORK (TheStreet) -- Cliffs Natural Resources (CLF) - Get Cleveland-Cliffs Inc Report shares continue to fall on Wednesday, down 10.5% to $10.11, two days after the international mining company reported a third quarter net loss.
The company's loss was due to a $6 billion write down on the value of its coal and iron ore assets which put it in breach of debt covenants. The company reported a third quarter net loss of $5.9 billion, or $38.49 per diluted share as a result of the write down.
Analysts at Brean Capital downgraded the stock to "sell" from "hold" in response to the charges today, while also maintaining an $8 price target on the company's shares.
TheStreet Ratings team rates CLIFFS NATURAL RESOURCES INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CLIFFS NATURAL RESOURCES INC (CLF) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: CLF Ratings Report