Monday, April 25, 2022

Long term hold

 $CLF

Cliffs is the primary supplier of steel for the automotive industry in the USA and 50% of their business comes from that.
The fact they’re making record profits and cash flow in such a challenging environment is very impressive. Challenge is that car manufacturers are not producing as many vehicles as in previous years not because of a lack of steel but a lack of chips, yet cliffs is improving their balance sheet CONSIDER if the chips shortage and other supply chain problems get resolved the demand for vehicles will be higher than average and cliffs is positioned to explode in price, the revenues will be insane! Just gotta have some patience, but this is a great long term hold if you understand the market conditions.


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