This resources company beat analysts’ estimates by $0.11 last quarter and five analysts have increased their forecasts for this year.
Cliffs Natural Resources (CLF)
From Nate’s Notes
Not only have commodity prices (including iron ore) experienced a fairly pronounced softening of prices over the past couple of weeks, as discussed above, the idea of using only U.S. steel as part of an effort to rebuild our infrastructure took a big hit this week, and I believe these two pieces of information, along with the fact that Cliffs stocks has been due for some good old-fashioned profit-taking for awhile now, helps to explain the sharp three-week decline that you can see in the chart below.
That being said, I still like the big picture story at Cliffs, and until we get evidence that suggests an infrastructure rebuilding is not going to happen after all, I am willing to be patient (for now). CLF is a strong buy under $9 and a buy under $12.
Nate Pile, Nate’s Notes, www.NotWallStreet.com, 707-433-7903, March 10, 2017