Cliffs Natural Resources Inc. (NYSE: CLF)
Cliffs Natural Resources Inc. (CLF), a mining and natural resources company made an announcement on Thursday stating better than expected third quarter 2015 financial results. The company reported a $0.10 loss per share which beat analyst estimates by $0.12 per share, as estimates were for a loss of $0.22. The company also showed significant cost savings by reducing production costs across the board.
Cliffs Natural Resources Inc. CEO Comments
Lourenco Goncalves, Cliffs’ Chairman, President and Chief Executive Officer, said,
“Our performance this past quarter illustrates how far we have come in our turnaround story. We have been able to deliver significant cost reductions in all areas of the business through disciplined execution of the strategy instituted last year.” Mr. Goncalves added, “We expect the domestic steel market to improve in 2016 as trade actions reduce the pressure of imports and firm up steel pricing. Our solid cost position coupled with stronger demand from the mills should drive better profitability for Cliffs.” PR Newswire
CLF Technical Analysis
CLF gapped up in price yesterday to $2.72, up from the prior day’s close of $2.64, which is a 3% increase in price based on favorable news. Taking a look at the daily chart, we can see the last time the stock traded above this price level was on October 16th, when it closed at $2.81. Taking a further look back on the daily chart, we can see the stock has been in an overall decline dating back to January 21st when the it traded at $9.07. Most recently, the CLF has been spiking down since October 6th when it was trading at $3.51. For this gap up, the first significant resistance level would be the $3.00 price level. The stock does have a high float of 123.92 million shares and is trading below the average daily trading volume. Due to the positive news, I would be looking for a spike up in trading. The stock did reach pre market highs of $2.92 but it gave back $0.20 at the open, or equivalent to 7%. For trading purposes, my entry point would have been $2.75 looking for a run to $3.00. My stop loss would have been $2.65 fearing anything below that and the stock’s move up would have stalled.
Cliffs Natural Resources Inc., a mining and natural resources company, produces iron ore and metallurgical coal. It operates five iron ore mines that produces iron ore pellets in Michigan and Minnesota; Koolyanobbing complex situated in northeast of the town of Southern Cross, which produces lump and fines iron ore; and two metallurgical coal mines located in Alabama and West Virginia. The company also owns interests in the Decar Property situated in British Columbia; and the Labrador Trough South property located in Fermont, Québec. It sells its iron products to integrated steel companies and Asian steel producers; and metallurgical coal to integrated steel and coke producers in Europe, North America, China, India, and South America. The company was formerly known as Cleveland-Cliffs Inc. Cliffs Natural Resources Inc. was founded in 1847 and is headquartered in Cleveland, Ohio. Yahoo Finance