Share of our first recommendation, a steel company, were just upgraded at B. Riley to ‘Buy’. Our second recommendation is a sale of a Bear ETF fund.
Buy: Cleveland-Cliffs Inc. (CLF)
From Nate’s Notes
In the same way that the recent market sell-off likely helped wash out any weak holders still in Bristol-Myers stock following the merger with Celgene, it likely had a similar effect on any holders of Cleveland-Cliffs who had recently become shareholders as a result of the closing of the acquisition of AK Steel and weren’t really sure if they wanted to be part of the new company or not. And when you’re in a “sell anything I don’t love” mode, these “oddly acquired” investments sometimes are the easiest to let go of.
Either way, the good news for those of us in the stock for the long haul is that a sizable percentage of those potential sellers likely got “cleaned up” as part of the sell-off. CLF is now a strong buy under $4 and a buy under $6.
Nate Pile, Nate’s Notes, NotWallStreet.com, 707-433-7903, April 10, 2020