CLF bet on earnings been following for awhile.
POSCO deal will be announced as to whether or not the will invest 10-20% stake in CLF APRIL 1st at latest based on SEC report. If mentioned during CLF earnings conference (Monday Feb 9) before market open as to how that’s panning out. Likely to see a lot of movement.
STLD and NUE missed top and bottom lines. But forecasted record demand.
CLF unlike others mentioned use blast furnace meaning they can’t shut off production as it cost too much but the slow down so they stack excess steel in downturns. With immediate growing demand they could’ve fulfilled a lot of the record inflows as NUE and STLD needed to pick pace up and didn’t have time to do so. This leads me to believe CLF may be the anomaly as they had product stacked up. <- Just theory.
Mango steel tariffs and increasing demand should start to help CLF with profit margins and reduce debt.
Mango rare earth minerals contracts, naval contracts, and massive Cap ex from hyperscalers should play crucial effect on steel demand. Tax season time new cars will start coming out of lot.
CLF rare earth results may somewhat meme as well as we seen last quarter but if real results and timeline could be issues on existing mines could play a legitimate roll in future valuation of CLF.
All things things added together we can expect extreme returns I posted late as this play could lure people in too early as this earnings is very High risk-High reward and I like to remain accurate on timelines and this earnings is extremely up in the air.
This play is intended for January 2027 as we see continued demand, possible interest rate cuts mid year around June I expect we see massive increase in price like what we seen during mangos 1st term which the stock quadrupled at 1 point.
Position
147 calls Strike $15-17 April & Jan Expiration
40 Puts $13.5 Feb 13
