{"id":31499,"date":"2015-11-19T21:53:07","date_gmt":"2015-11-20T05:53:07","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=31499"},"modified":"2015-11-19T21:53:07","modified_gmt":"2015-11-20T05:53:07","slug":"little-cliffs-natural-resources-still-talks-like-the-900-pound-gorilla","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2015\/11\/19\/little-cliffs-natural-resources-still-talks-like-the-900-pound-gorilla\/","title":{"rendered":"Little Cliffs Natural Resources Still Talks Like the 900-Pound Gorilla"},"content":{"rendered":"<p><strong>(This is an excerpt from an article I originally published on Seeking Alpha on November 3, 2015. <a href=\"http:\/\/seekingalpha.com\/article\/3636376-little-cliffs-natural-resources-still-talks-like-the-900-pound-gorilla\" target=\"_blank\">Click here to read the entire piece<\/a>.)<\/strong><\/p>\n<p>Cliffs Natural Resources (CLF) reported earnings last week on the morning of October 29, 2015. {snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_31502\" aria-describedby=\"caption-attachment-31502\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151102_CLF.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151102_CLF.png\" alt=\"Cliffs Natural Resources (CLF) is clinging to post-earnings gains so far\" width=\"550\" height=\"375\" class=\"size-full wp-image-31502\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151102_CLF.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151102_CLF-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-31502\" class=\"wp-caption-text\">Cliffs Natural Resources (CLF) is clinging to post-earnings gains so far<\/figcaption><\/figure><\/p>\n<p><figure id=\"attachment_31503\" aria-describedby=\"caption-attachment-31503\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151102_CLF-monthly.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151102_CLF-monthly.png\" alt=\"CLF has plunged steeply during the collapse in commodity prices from the 2011 peak. It is now sitting near a 12-year low.\" width=\"550\" height=\"375\" class=\"size-full wp-image-31503\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151102_CLF-monthly.png 550w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2015\/11\/151102_CLF-monthly-300x205.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><figcaption id=\"caption-attachment-31503\" class=\"wp-caption-text\">CLF has plunged steeply during the collapse in commodity prices from the 2011 peak. It is now sitting near a 12-year low.<\/figcaption><\/figure><br \/>\n<strong>Source: <a href=\"http:\/\/www.freestockcharts.com\/platform\/v1\" target=\"_blank\">FreeStockCharts.com<\/a><\/strong><br \/>\n<\/center><\/p>\n<p>From my perspective, the always colorful commentary from Chairman, President, and CEO Lourenco Goncalves was once again the most interesting aspect of the earnings call. Goncalves took this occasion as another opportunity to complain bitterly about conditions in the global iron ore market even as he strutted like the 900-pound gorilla in his own cage. {snip}<\/p>\n<p>Here is a key quote:<\/p>\n<blockquote><p>&#8220;&#8230;I am doing everything to separate ourselves from China because I believe that China is a disaster. I believe that China will bring Australia down. But you know Australia is not very different from Minnesota. I think that Australia will only believe that China is destroying Australia when they build an artificial island on the Great Barrier Reef that they can see from the shore. So it&#8217;s a matter of myopic approach to world geopolitics and economics. The United States will survive. We are going to continue to be insulated and Cliffs is the only 900-pound gorilla in this marketplace&#8230;<\/p>\n<p>&#8230;A year and couple of months ago, we decided that we would just stay within the boundaries of the United States of America, the best country to be in, the best market to be in, the most resilient, good in times of peace, good in times of war. We&#8217;re well positioned. We are the 900 pound gorilla.&#8221;<\/p><\/blockquote>\n<p>{snip}<\/p>\n<p>However, as the stock charts above demonstrate, CLF&#8217;s retrenched business has yet to stabilize. {snip}<\/p>\n<p>Despite the boastful and defiant pronouncements from Goncalves as the 900-pound gorilla, this is still not yet an investable space. It is still only a trading space. {snip}<\/p>\n<p>Be careful out there!<\/p>\n<p>Full disclosure: long BHP put options, long RIO call options, long VALE<\/p>\n<p><strong>(This is an excerpt from an article I originally published on Seeking Alpha on November 3, 2015. <a href=\"http:\/\/seekingalpha.com\/article\/3636376-little-cliffs-natural-resources-still-talks-like-the-900-pound-gorilla\" target=\"_blank\">Click here to read the entire piece<\/a>.)<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(This is an excerpt from an article I originally published on Seeking Alpha on November 3, 2015. Click here to read the entire piece.) Cliffs Natural Resources (CLF) reported earnings last week on the morning of October 29, 2015. {snip} Source: FreeStockCharts.com From my perspective, the always colorful commentary from Chairman, President, and CEO Lourenco &#8230; <a title=\"Little Cliffs Natural Resources Still Talks Like the 900-Pound Gorilla\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2015\/11\/19\/little-cliffs-natural-resources-still-talks-like-the-900-pound-gorilla\/\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[386,181,4,199,220],"tags":[631,465,466,676,692,661],"class_list":["post-31499","post","type-post","status-publish","format-standard","hentry","category-australia","category-brazil","category-china","category-commodities","category-earnings","tag-bhp","tag-clf","tag-cliffs-natural-resources-inc","tag-iron-ore","tag-rio","tag-vale"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Little Cliffs Natural Resources Still Talks Like the 900-Pound Gorilla - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2015\/11\/19\/little-cliffs-natural-resources-still-talks-like-the-900-pound-gorilla\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Little Cliffs Natural Resources Still Talks Like the 900-Pound Gorilla - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"(This is an excerpt from an article I originally published on Seeking Alpha on November 3, 2015. 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