Should You Buy the CLF Sell-off?

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.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2253666, ~/Articles/ArticleHandler.aspx, 12/18/2014 8:45:48 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement