I guess I've been away from blogging for a while. So maybe it's time to get back to the grind & talk about about what I enjoy doing most - investing.
First up, let's revisit a company I've talked about many months ago - Cleveland-Cliffs. (CLF).
Included below are some key anchored VWAPs that serve as a useful technical indicator given that it describes the average volume weighted entry of those after the marked date. This usually provides beneficial support and resistance lines to track.
As noted above, CLF appears to be bouncing higher off the December anchored VWAP suggesting the bulls are beginning to take control of the situation.
A few key things I like about this company:
- US-based Industry leader in Iron that has now migrated into steel with its recent merger.
- Infrastructure spending play.
- Commodities holding up in light of potential and ongoing inflation.
- Favorable debt schedule as the company recently refinanced much and have no real major payments for 5 years or so.
- 30% shares short props the company up for a potential short squeeze.
Iron prices have not only recovered since this recession has started, but begun to continue even higher.
Shorts better tread carefully here.