CLF Stock Analysis: Donald Trump Presidency Increases Profitability

BlairThe article was written by Blair Goldenberg, a Financial Analyst at I Know First, and enrolled in a Masters of Finance at Colorado State University.

Cliffs Natural Resources (CLF) Stock Analysis: Donald Trump Presidency Increases Profitability

  • Background on CLF
  • The Metals Market
  • CLF Stock Analysis
  • I Know First Past Prediction

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CLF Stock – Quick Win: 23.75% Return in 7 Days

On July 28th, 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 28th. clf stock

Uncertainty Aversion: Why Cliffs Natural Resources Is A Good Buy

Iron ore prices have fallen more than 25% so far this year and seem bound to fall further according to major financial institutions. Larger mining conglomerates, which own more diverse portfolios of mineral resources as well as have better quality and more efficient iron mines, will be better able to weather the decline in iron prices than smaller producers, such as Cliffs Natural Resources that rely overwhelmingly on iron ore. Additionally, since most iron ore producers have stopped negotiating long-term contracts with their largest consumer, the steel industry, they are much more susceptible to iron ore price fluctuations.
  Silver_forecast_4.9drop   Cliffs Natural Resources has the additional misfortune of being saddled with years of poor management, an inefficient coal division, increased costs of producing iron ore, increased operating expenses, mounting debt, activist investors, lawsuits, and a particularly harsh U.S. winter. I Know First's algorithm indicates that Cliffs has much room to rebound, and it ranks Cliffs as one of its top investments for both the medium and long-term time horizons.
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