Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, iron ore miner Cliffs Natural Resources
With that in mind, let's take a closer look at Cliffs' business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Cleveland (1847)|
|Market Cap||$8.54 billion|
|Industry||Industrial metals and minerals|
|Trailing-12-Month Revenue||$6.56 billion|
|Management||Chairman/CEO Joseph Carrabba
CFO Laurie Brlas
|Return on Equity (Average, Past 3 Years)||23.7%|
|Cash/Debt||$545 million / $4.2 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
Earlier this month, mitleg tapped Cliffs as a timely bargain opportunity:
This is an all around great company. ... With a global economy seeming to moderate, it is a good time to get in. Forward [P/E] is under 6. PEG is well under 1. Great management. Buy.
In fact, Cliffs sports a particularly paltry P/E of 4.6. That represents a discount to competitors like BHP Billiton (7.9), Peabody (9.0), and Teck Resources (8.5).
CAPS member BigOlDave elaborates on the bull case:
Cliffs Natural Resources seems to be a good stock to hold. ... Metal mining (iron ore pellets and met & thermal coal) seems like a good sector, if the world economy gets healthier.
As a sanity check, I note the following:
• S&P gives it 5 stars out of 5 (“Strong Buy”) ...
• The Motley Fool [CAPS community] consistently gives it 4 out of 5 stars.
[I]n an up market Cliffs will take off like a rocket. As soon as it hits some rare heights, I’m out of it. In the meantime, its dividend yield is fair… though I prefer higher dividend payers.
If [Cliffs] was not such a prominent player in my portfolio, I would look to get more of it. Recommendation: Buy.
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