CLF Stock

On July 28^th, 2015, The I Know First algorithm gave a bullish signal of 11.27 for the ticker CLF (Cliffs Natural Resources), which had a strong predictability indicator of 0.26. In accordance with the algorithm’s prediction, Cliffs Natural Resources spiked 23.75% on trading day July 28^th.

Cliffs Natural Resources is a 165-year old firm that specializes in the mining and benificiation of iron ore and the mining of coal. Having its headquarters located in Ohio, it is undoubtedly a world-leading natural resources company. It is a major supplier of iron ore pellets to the North American steel industry from its mines and pellet plants located in Michigan and Minnesota. Cliffs also produces low-volatile metallurgical coal in the U.S. from its mines located in West Virginia and Alabama.

Pure speculation is the cause behind yesterday’s huge increase in stock price. Wall Street analysts predicted a while ago a loss of $0.11  per share but the market rumour was yesterday, one day before the company’s earnings report, that the most accurate estimate for the quarter would only be a loss of $0.09 per share.

In spite of this optimistic speculation, it is important to note that the company is expected to lose a lot of money. The fact that iron ore and metallurgical coal have been crushed on the market is probably the main reason for today’s commodity problems. Even with yesterday’s pre-earning bounce, CLF has lost 59% YTD and 36% in the past month alone, which is pretty frightful for a company close to $3 billion in debt.