Scalino schreef op 16 maart 2017 08:33:
[...]
Goedemorgen of voor jou middag/avond, onderstaande had ik paar dagen geleden gepost, weet niet of je het toen gelezen had, maar misschien wel interessant voor je:
The Selloff in Cliffs Natural Resources (CLF) Is A Buying Opportunity:
By Alexander Gorodezky - March 14, 2017 - 14:34 GMT
Investors’ concerns over Chinese iron ore production and consumption have created strong iron ore market volatility, putting pressure on prices over the last one month. After a strong rally in the last twelve months, Cliffs Natural Resources (NYSE:CLF) stock price declined almost 24% in the last month alone, impacted by the downward trend in prices.
However, iron ore prices rebounded strongly in the latest session, buoyed by China’s strategy to cut its excess capacity. In addition, the growth in Chinese infrastructure activities also added to the iron ore prices.
Although, Cliffs Natural Resources isn’t among the biggest suppliers to China, the company has strong penetration in the American markets, where demand has been gradually increasing due to higher tariffs on imported products.
Moreover, demand from steel producers increased substantially in the last few quarters, while analysts expect further improvement in demand considering Trump’s infrastructure expansion plans and higher taxes on imported products. CLF’s recent financial performance also demonstrates increasing demand for iron ore in the coming months.
In the latest quarter, its sales volume in the U.S. iron ore pellet business increased 53% Y/Y to 6.9M metric tons, while the company’s U.S. iron ore sales volume increased 4.3% to 19M metric tons this year, indicating a strong upside from 18.1M metric ton in 2016.
The company also generated strong profits in fiscal 2016, compared with a big loss in the previous year. In fiscal 2016, its consolidated revenues increased 5% to $2.1 billion, while its cost of goods sold declined 3% to $1.7 billion compared to 2015. Its net income was standing around $199 million, compared to a net loss of $748 million recorded in the prior year.
The company expects its adjusted EBITDA to stand in the range of $850M in the first quarter this year, compared with adjusted EBITDA of $374M in fiscal 2016. CLF also appears in solid cash position after its recent asset disposals and lower investments in the last two years. Thus, the dip in CLF stock price offers a perfect buying opportunity for investors.