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Trade-Ideas LLC identified
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Cliffs Natural Resources as such a stock due to the following factors:
- CLF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $152.5 million.
- CLF has traded 1.3 million shares today.
- CLF is up 3% today.
- CLF was down 9.5% yesterday.
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More details on CLF:
Cliffs Natural Resources Inc., a mining and natural resources company, produces iron ore and metallurgical coal. The stock currently has a dividend yield of 5.3%. CLF has a PE ratio of 19.1. Currently there are 2 analysts that rate Cliffs Natural Resources a buy, 3 analysts rate it a sell, and 8 rate it a hold.
The average volume for Cliffs Natural Resources has been 10.5 million shares per day over the past 30 days. Cliffs Natural has a market cap of $1.7 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 2.57 and a short float of 50.4% with 4.73 days to cover. Shares are down 61% year-to-date as of the close of trading on Wednesday.
rates Cliffs Natural Resources as a
. 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 ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 5116.7% when compared to the same quarter one year ago, falling from $117.20 million to -$5,879.60 million.
- The debt-to-equity ratio is very high at 105.77 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.39, which clearly demonstrates the inability to cover short-term cash needs.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, CLIFFS NATURAL RESOURCES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $227.90 million or 23.26% when compared to the same quarter last year. Despite a decrease in cash flow CLIFFS NATURAL RESOURCES INC is still fairing well by exceeding its industry average cash flow growth rate of -36.26%.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 63.03%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 6021.53% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- You can view the full Cliffs Natural Resources Ratings Report.