My opinion on this stock is that its a great company in no doubt one of the greatest fields to be in 2022. But it is way to stretched at the current valuation and I can see the stock testing their support level at approximately 26.5$, the RSI currently is more than 75 points and the company normally trades at 50-55. I have opened a short position myself, let me know your thoughts on the company. As always that is not financial advise as I am just expressing my personal opinion so please do your research.
Key point: "at its current valuation." Smart money knows CLF is undervalued. I respectfully disagree. They are are trading much lower and are not valued appropriately. CLF will be posting record breaking revenues this year and have a ton of FCF.
Louk_Min
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@TMT247, They have a very low PE ratio and I completely understand your point. But they had a massive run up, my short trade is just a short term trade as I believe short term it will pull back to approximately 26-28$. I might be wrong and glad to hear the other side of that trade.
TMT247
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@Louk_Min, looks like u were right in the short term. I am definitely long CLF over the next few months though. We'll see if there is anymore pullback this week or has it been enough to begin its next leg up.
Louk_Min
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I agree with you its a great company with great balance sheet, i closed my short position on Friday with a nice little gain. Lets see because i think it might drop a bit more
TMT247
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@Louk_Min, are you a Prop trader in London? Retail?
Louk_Min
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No not really but i am involved with the stock market for the better part of 2 years. What about you?
TMT247
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@Louk_Min, previously a CDO/CLO analyst. But currently in US Navy...studying trading as much as possible now and going into either Prop trading or retail after I'm done with the Navy.
Louk_Min
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@TMT247, Yes its very interesting following the markets I would agree with that.