Cleveland-Cliffs Inc. (CLF-N)

Their balance sheet isn't too good, and if the car companies are cutting back their demand (caused by tariffs), then demand for steel will decline. This will fall to $6.5

Are vertically integrated. Will benefit from steel tariffs. Cash flow weakness is behind them. They produce in the US as well as Canada, so they can adapt to tariffs.

Is soaring on Trump's steel tariffs, but is -42% the past year. But it comes down to steel prices. He won't sell a share. They've made good acquisitions, and control costs well.

The steel stocks are the worst in this market, but if you buy this now, expect it go down 1-2%.

At a 52-week low today, but he hasn't and won't sell any shares. It looks like steel prices have bottomed--and shouldn't have fallen this far. Their M&A activity is also pressuring shares. Also, the Nippon Steel deal will be blocked; the US Steel deal was botched from the start. Hang onto it--it's below book value. Their M&A will add value. It isn't just a cyclical play.

It hit a 52-week low today, but people will be kicking themselves for not owning this, because this will rally when interest rates decline.

Steel stocks are falling with the price of steel. Of this sector, CLF is the most likely to bounce back, though.

It reports Monday. Has been strong despite the Fed's rate hikes.

Just upgraded on Wall Street. Estimated $1.2 billion free cash flow this year. Debt-to-EBITDA is just below 1, so they have little debt to buy. Input costs have decreased while car production rises (good for CLF). Expects them to buy back a ton of shares.

With so few steel companies, Nucor and Cleveland Cliffs enjoy scarcity value with enough business to keep pricing up, though Nucor has a much better balance sheet. It reports Monday.

They announced share buybacks a while ago, but the money still isn't flowing here.

Iron ore space is a rollercoaster ride, high beta, depends on China. Volatile space, due to false start in China. He's been trimming names over past months. Nothing wrong with the operation, but dividend not attractive enough to provide protection in an economic slowdown.

Many felt that the cycle was over and prices would collapse, but he feels this is a little downturn. Demand will bounce back because of infrastructure spending to come next and demand for EVs and batteries. This is where the cycle is heading for base metals.