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Is This Steel Specialist a Steal?

Cliffs Natural Resources (NYSE: CLF  ) has hit a pretty rough patch this year. The entire steel industry has been hit hard so far, but both Morgan Stanley and Credit Suisse have downgraded Cliffs recently over fears of debt load. The combined effect of these events has been enough to drag the stock down 73% over the past year. While early Q1 results from Alcoa (NYSE: AA  ) have given a little encouragement to the industry, Cliffs still has a long way to go to in order to get back to where it was a year ago.

With the company's stock trading at 70% of tangible book value, this could be a great time to get in with this steel specialist. In this video, contributor Tyler Crowe explains how the concerns of the debt load may be a little overplayed, and how the long-term outlook for steel demand is promising enough that this temporary blip might not be worrisome for long-term investors.

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 also underwhelmed investors lately, especially after its dramatic 76% dividend cut in February. However, it could now be looked at as a possible value play due to several factors that are likely to remain advantageous for Cliffs' management. For details on these advantages and more, click here now to check out The Motley Fool's premium research report on the company.

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