This is an obvious one.
CLF is getting hammered. Apparently, China no longer needs their iron ore for their ghost cities. The bonds are still trading above par, with the 2040’s just about even. I’m not sure what the market is saying by hammering CLF. Both CLF and WLT have been serial underperformers, which is the exact opposite of what they should be doing if China was really growing at 8%.
I’m not a buyer of any stock that is heading lower. I am, however, intrigued by the carnage in CLF, as it is a strong tell for what those lying Chinese bastards are really doing.
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wouldn’t say it was a straight line into a bk refi – but close enough – http://ir.cliffsnaturalresources.com/releasedetail.cfm?releaseid=576755
Yo Flizeye,
Where do you access quotes for their bonds?
Thanks!!
Jester
Through my trading terminal
With a little experience around the steel industry, I can tell you that many North American firms face a decision every day to buy input materials from CLF or from “China”. China is getting cheaper and cheaper. Doesn’t mean it’s due to slower growth there, but it does mean that China has less reason to buy from CLF each day
Yes it does mean it’s owing to slower growth there. Stick to steel industry.
Thanks Genius. I’ll spell it out for you:
The assumption inherent in the post, and your position, is that there is no possible way that China’s input manufacturers (e.g. CLF’s competitors there) have grown along with, or faster than, the Chinese economy, whether it is 8%, 80%, or .8% GDP growth.
It’s like saying “America is buying less fuel from the middle east, the economy must be tanking” – when in reality the lurking variable is the domestic fuel production boom we’ve seen in the last few years.
I’m not in the steel industry, I just sit in alot of meetings.
PS…I make more money than you.
Something smells fishy!
Love the PS. comment. But maybe you should have considered inserting the word PAL.
Example:
PS…I make more money than you PAL.
Maybe taken together with OTHER indicators, it DOES indeed mean China is slowing. But hey, what do I know – you clearly make more money than me. Go balls deep full leverage into Chinese ghost cities. lol
FD: EDZ FXP BZQ – long US, short the rest of the world
That BZQ is something else. What a lovely, liquid ETF. 1200 on the tape a few hours into trading day! That’s a stock I want to own.
Volume is not relavant to etfs… actually the most money I have made are on absolutelly illiquid etfs
look at CURE as an example, I am just fine with that
Cyprus-Tax the rich because they can afford it! Isn’t that what Obama is trying to do?
Release the Kraken!
Slay the muff dragon!!
Government officials of every country lie. Why should China be any different? What government official do is maintain– & if possible increase–their country’s power– & thus their own. The truth is not necessarily very helpful in that goal.
no tickee no washee
look at TCK and VALE …
crashing mode
Today is a repeat of yesterday according to the third law of physics.
Hang on to your hat. Lizzy Warren is calling for a $22/hour minimum wage. lol