The open letter urges shareholders to vote for the board of directors using the white card which cotes for seven nominees from Cliffs, and four nominees from activist investor Casablanca Capital. The letter warns that giving Casablanca a majority of the board could result in a "fire sale" of Cliff's assets.
JPMorgan cuts its second quarter EPS estimates for Cliffs to a loss of -34 cents a share from a gain of 19 cents a share, which may also be contributing to the stock's decline. Cliffs will announce its second quarter results on July 24.
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TheStreet Ratings team rates CLIFFS NATURAL RESOURCES INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CLIFFS NATURAL RESOURCES INC (CLF) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow."