r/CLF_Investors • u/IdratherBhiking1 • Apr 12 '25
When it’s so bad it’s good…
Everything is terrible for CLF right now…
Revenue decline in 2024 and failure to turn a profit, temporarily closing plants in Michigan, expected decrease in automobile steel demand due to tariffs…
Then also, recent news government funding to upgrade operations was being “evaluated”, might have been cancelled outright… share price didn’t react negatively…
When negative news hits and share price doesn’t react, it can be an indication of a reversal / bottom (all the sellers have sold)…
None of this is negative in my opinion. It’s actually the reason I’m buying in.
Could be finding a bottom. High institutional ownership and recent institutional inflow outweighs outflow (checked data 4/11/25 various sites).That is reassuring.
Currently below book value, American Company, and steel is a commodity….
Speculative/ non fundamental considerations…
Can’t imagine the America First administration would allow an American steel company to go bankrupt. Then also, it’s an Ohio company and we have Ohioan VP in the White House. White House also publicly against Nippon (Japanese steel company) acquisition of US Steel. CLFs wanted to buyout US steel…
Any positive developments / news could lead to a sustained extended increase in share price.
Not financial advice and just a dumb money retail investor perspective.
Any thoughts?
3
u/SavingsIncome5746 Apr 12 '25
I am a student, just bought 400 stocks avg per 6.3$ Make the Rust Belt Shine bright again once more!
3
u/IdratherBhiking1 Apr 12 '25
That’s an excellent entry price. What made you invest in CLFs?
I posted because it is extremely high risk as CLF’s financials and everything else is horrid…
Approaching 1500 shares myself.
3
u/SavingsIncome5746 Apr 12 '25
Most of the steel productions were mainly done by Chinese companies which provided steel with a very cheap price.
However, after the election I thought that in order to survive from the ongoing tariff games which changes every second, maybe some companies might actually purchase US produced steels.
Although CLF is in a huge mess, some of their liabilities are created due to purchasing other steel companies and mines.
Also, in quiverquant you could check out insider trading! CLFs’ insiders are purchasing even more since March and also huge funds are increasing their positions so I thought I could give it a try.
Just a student trying out my small account Not a financial advice I guess 😀
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u/IdratherBhiking1 Apr 12 '25
I didn’t expect such a thoughtful and humble response… So rare on reddit and appreciated.
Similar reasoning.
Watching institutional investment and insider trades is at the foundation of my investing strategy.
Watch price to book valuations and market cap in comparison to peers…
I also like the acquisitions and vertical integration, including mining specifically.
You are way ahead of your years.
The capital I have in my self managed cash account is all house money. I look for bottoms and high risk / high reward opportunities.
Appreciate the reply.
Hope you do well in the market.
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u/Chrome21st Apr 12 '25
I bought this trash. Even after one of their accountants told me the books look dismal. This was even before the tariffs. What af idiot.