CLF Stock: Don’t Fall Off The Long Cliff: Algorithmic And Summative Analysis Is Bearish On Cliffs Natural Resources Inc.

Summary

  • The company recently announced a lawsuit against them for $52.6 million which was followed by a $500 million senior secured note due 2020 sell announcement.CLF stock
  • EPS down over 2000% from 2013, investors are weary of waiting for the rebound.
  • Analysts agree the stock is unlikely to recover, which is supported by a strong Goldman Sachs iron ore price target for 2015.
  • Algorithmic analysis and decision alternatives.

Algorithmic Analysis of CLF Stock

The graph shown in the article on Seeking Alpha represents an overall relatively low confidence level of 60-70% that CLF will indeed go down in value; however, if it does the very strong algorithmic signal suggests the return would be well in the two digits. This really leaves only three alternative paths of action.

Decision Alternatives

  1. If you currently own shares you should consider selling, the company has shown no signs of recovery or potential turnaround and is overshadowed by the ever decreasing iron ore prices.
  2. If you do not currently own shares you can find better opportunities, or wait for a while before making any long decisions regarding this investment.
  3. If the risk does not scare you, fundamentals, momentum, and our algorithmic analysis all suggest the stock will continue its decline throughout 2015, going short is on the chapter here.

Read The Full Article On Seeking Alpha