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Is the steel and iron-ore company, Cleveland-Cliffs hurtling toward disaster?
Shareholders should be outraged.
The company has plunged into financial chaos, pursued unaffordable acquisitions, and tanked its stock value — all while ignoring the fundamentals that ensure long-term stability. It’s time for shareholders to wake up and demand accountability before Cleveland-Cliffs collapses under its own mismanagement.
Here are the facts.
Cleveland-Cliffs’ $7.3 billion bid for U.S. Steel was doomed from the start, with financial statements showing assets totaling just $6.5 billion — nowhere near what was needed to complete the deal.
After losing out to Nippon Steel, the company continues its delusional acquisition spree, chasing a $500 million deal with Russia’s NLMK Midwest division and a $2.5 billion purchase of Stelco in Canada.
Where is this money coming from?
The answer is clear: it’s not, and shareholders are the ones who will pay the price.
The market sees the writing on the wall. Cleveland-Cliffs’ stock has cratered.
Analysts are fleeing, with JP Morgan slashing its rating and GLJ Research outright recommending selling the stock.
Why?
Because this company is bleeding cash, reporting a pathetic $9 million profit in Q2 2024 — less than a penny per share. Cleveland-Cliffs is recklessly throwing money at deals it can’t afford.
Over the past year, Cleveland-Cliffs has consistently failed to prioritize the financial well-being of its shareholders.
Instead of delivering returns, it has focused on a series of poorly conceived acquisitions that seem more like desperate gambles than sound strategies. Shareholders should ask themselves: how much longer can this trajectory continue before the company faces irreversible damage?
What’s worse, Cleveland-Cliffs’ failures are not happening in isolation.
They are dragging down confidence in the broader U.S. steel industry, a sector that is critical to national infrastructure and economic security.
As Cleveland-Cliffs flounders, it risks tarnishing the reputation of American steelmakers and leaving the industry vulnerable to Chinese competition.
If the company’s mismanagement continues unchecked, it could undermine efforts to maintain a strong domestic steel sector.
The company’s questionable acquisitions and financial freefall are leading it straight off a cliff.
Shareholders must demand immediate action to stop this train wreck before it destroys their investments entirely.
Charlie Kolean has worked as a senior policy adviser for state legislators, multinational corporations, and think tanks. Mr. Kolean has been involved in politics for over a decade as an activist, candidate, political consultant, and party leader. He was a bundler on the Trump Finance Victory Committee and is a member of the American Association of Political Consultants. Readmore of his reports — Here.
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