Cliffs Natural Resources Is My Latest Buy. Here's Why

Mentioning coal and iron ore to investors over the past year or so has typically been a surefire way to raise some eyebrows. Unfortunately for producers of these two commodities, this sour attitude has been reflected in many of their share prices. Cliffs Natural Resources  (NYSE: CLF  )  happens to be one of those companies.

Motley Fool analyst Taylor Muckerman believes that Cliffs Natural Resources has paid its dues and is adding it to his Real Money Portfolio. Management has made several wise moves in terms of its use of capital yet the stock has continued to sell off. To find out some of the specifics as to why he chose Cliffs Natural Resources, check out the short video clip below. 

Read/Post Comments (6) | Recommend This Article (3)

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  • Report this Comment On August 27, 2014, at 1:28 PM, plange01 wrote:

    clf looks good when it drops back below $14.50 and is a sell anywhere above $17.50 a key point to watch is what happens with their 4% dividend now that a TRASH fund has control...

  • Report this Comment On August 29, 2014, at 3:12 PM, nolasue wrote:

    Okay guys, when will this support for a

    Horrible industry stop. Promotion of buying in and supporting the COAL industry is simply BAD. Between the desimation of the mountains and the horrible land they leave behind, to ultimately the burning of the worst environmental energy source and the Pollution it causes, Coal companies should not be supported in any way, especially Stocks. ( do you have children that plan to live a long life, not going to happen if we keep supporting earth killing industries).

  • Report this Comment On August 30, 2014, at 1:36 AM, couches200000 wrote:

    @ nolasue, You're barking up the wrong tree.

    CLF produces metallurgical coal and iron for STEEL. Ignorance is bliss.

  • Report this Comment On September 02, 2014, at 9:59 AM, ScoopHoop wrote:

    I would be careful. Iron ore is experiencing a softening demand in China. David Stanway of Reuters says Chinese steel and iron ore

    prices fell today, with buyers unconvinced by efforts to tackle a supply glut and worried that weak manufacturing is adding to the damage caused by a property slowdown in the world's top steelmaking nation. Coal consumption has flattened out. If you are buying this stock, I suggest you buy in fifths or even 10ths. This stock is down 1.73% today -- after you wrote your article. When stocks are free-falling like CLF, investors are wise to nibble a little at a time rather than plunging in. This stock could fall 1% again tomorrow. I'm staying away. On the strength of CNI, UNP and BRKB, my portfolio is up over 10% this year. Stocks like CLF would have held me back.

  • Report this Comment On September 09, 2014, at 5:01 PM, FriendlyKenny wrote:

    As a long-term investor, I have no problem with stocks like this

  • Report this Comment On September 27, 2014, at 5:42 AM, AnActualWorker wrote:

    @nolasue, You should really do more research before ignorantly lashing out against "coal" . Your worried about children living a long life? Coal jobs are dying out and children are starving here . I personally work for an underground mine operation . We mine "metallurgical" coal . Google it ... And all wildlife on top is thriving and untouched , no trees are gone .. Leonardo Decaprio should go march through the poor and starving coal communities .. Lets see how cool he looks then .

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Taylor Muckerman

Taylor is an Associate GM in our Fool International operations. Prior to that he covered all things Energy + Materials as an analyst. Over the years, he has built an investing skill set to rely on when evaluating companies inside and out. While at the Fool, he has made appearances on CNBC and Fox Business. In addition, he completed his MBA at the University of Maryland and will sit for the Level II CFA Exam.

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9/2/2015 4:03 PM
CLF $3.80 Up +0.04 +1.06%
Cliffs Natural Res… CAPS Rating: ***