Quick Win by the Algorithm

Cliffs Natural Resources Inc. (CLF)

On April 12th, 2016, the I Know First algorithm gave a bullish signal of 443.64 for the ticker CLF with a predictability indicator of 0.64. As the algorithm predicted, CLF experienced a quick win of 107.65% increase in stock price in 3 months.

Cliffs Natural Resources Inc. is a mining and natural resources company. The Company is a supplier of iron ore pellets to the North American steel industry from its mines and pellet plants located in Michigan and Minnesota.

CLF’s stock price has been plummeting for years along with all iron and steel companies. This is a result of oversupply of steel which caused the price it could be sold at to drop starkly. This was also a result of steel dumping by Chinese companies (subsidized by the Chinese government) in order to gain market share in the industry.

CLF was on the verge of bankruptcy when a number of things provided the company with the force it needed to turn around. First came President Obama’s 266% tariff on Chinese steel in mid-April to eliminate the predatory pricing in the industry. Next, CLF refinanced its debt and was able to squeeze out a first-quarter profit in late April of $108 million when most were expecting a loss. Furthermore, CLF continued rebounding at the end of May with a contract to make custom ore pellets for ArcelorMittal USA LLC until the year 2026. Finally, China recently had an increase of demand for steel which sent iron ore prices soaring since iron is required to make steel. This all led to CLF’s stock price shooting through the roof for a 107.65% gain within 3 months which was unexpected to all, except the I Know First Algorithm.