Today’s Stock: Cleveland-Cliffs Inc. (CLF)Today’s Stock: Cleveland-Cliffs Inc. (CLF)
Cleveland-Cliffs Inc. operates as a steel producer in the United States and Canada. It offers hot-rolled, cold-rolled, and coated products, such as aluminized, electrogalvanized, and galvalume products, as well as galvanneal and hot-dipped galvanized products; stainless and electrical products, including GOES, NOES, and auto chrome; plate products; and slab and other steel products. The company also provides non- steelmaking products comprising stamped components, tool and die, and tubing; and scrap, iron ore, HBI, coal, and coke products.
It also provides tubular components, including carbon steel, stainless steel, and electric resistance welded tubing products. In addition, the company is involved in the mining of iron ore; production of pellets and direct reduced iron; and processing of ferrous scrap through primary steelmaking and downstream finishing, stamping, tooling, and tubing. It serves direct automotive, infrastructure and manufacturing, distributors and converters, and steel producers. The company was formerly known as Cliffs Natural Resources Inc. and changed its name to Cleveland-Cliffs Inc. in August 2017.
My Thoughts 💭My Thoughts 💭
Never heard of this company until today. Ansel selecting a steel manufacturer and miner makes sense for re-industrialization of America but did he select a company that has strong fundamentals? Let’s take a look.
At 11.2k sats per share ($71,154), and no dividend dividend. Investors will see a return on their investment if the company continues to grow or they start to buy back their own stock.
The company trades at a PE -3 which means investors are paying $3 access $1 of losses. Which means the company is not profitable. Investors are paying the price for this company to lose money.
Let’s review some key fundamentals to determine if this stock is worth spending sats on.
PE:PE:
Expected Growth:Expected Growth:
Revenues and expenses:Revenues and expenses:
Balance Sheet:Balance Sheet:
Dividend:Dividend:
No dividendNo dividend
Bitcoin per share:Bitcoin per share:
NoneNone
Ownership breakdown :Ownership breakdown :
Leadership:Leadership:
The fundamentals of this company are terrible.
With the rapid revenue rise the company still haven’t found a way to be profitable!
The balance sheet is a nightmare, negative free cash flow, currently unprofitable, an overpaid CEO, priced under $10 which is a signal this company is close to bankruptcy, and no dividend.
The only positive is the insane growth analysts are projecting. Over 110% growth is unbelievable for a steel company! Are they going to supply all the steel needed for this AI robot boom?
From a Bitcoiner perspective. Paying 11k sats for one share would be a crime against other Bitcoiners. This company is very poorly run. The fundamentals are way too weak to justify spending sats on it.
Here is the performance according to Simply Wall Street
No clue why Ansel picked a steel producer with such poor fundamentals. CLF can’t get out of their own way.
I would need to do more research as to why the growth prospects are so high. Maybe that is why Ansel picked them?
The risk reward could be great if they turn it around but I’m skeptical plus they will have stiff competition with other US steel makers.
This is probably one of the worst companies in this whole American re-industrialization portfolio!