February 13, 2013
If you are a value investor, today's big plunge in share price for Cliffs Natural Resources (NYSE: CLF ) should pique your interest enough to take a deeper look into the company's operations. Now trading below below a 12 times forward price-to-earnings ratio, is this an entry point investors should take advantage of? The company is a leading seller of two critical components in steel manufacturing, and the need for steel doesn't appear to be disappearing any time soon. Yes, this industry is cyclical, but a trough like this is just too hard to ignore. Check out the video for Motley Fool analyst Taylor Muckerman's take on the scenario.
Cliffs Natural Resources has grown from a domestic iron ore producer into an international player in both the iron ore and metallurgical coal markets. It has performed in line with many competitors over the years in a very cyclical industry because of several factors that are likely to remain advantageous for Cliffs' management, despite the recent announcements. For details on these advantages and more, click here now to check out The Motley Fool's brand-new premium report on the company.