2 Worth Watching Stocks: Cliffs Natural Resources Inc (CLF) and Netlist, Inc. (NLST)
New York, NY – GDP INSIDER – 03/26/2015.
This article discusses two companies: Cliffs Natural Resources Inc (NYSE:CLF) and Netlist, Inc. (NASDAQ:NLST)
Cliffs Natural Resources Inc (NYSE:CLF) leveled out from its recent slow decline yesterday with the stock gaining 1.60% or eight cents to finish the day at a closing price of $5.07 on heavy trading of 12.47 million shares, compared to its 30 day average trading volume of 7.11 million shares. The US focused iron ore and metallurgical coal producer began to rise after it announced that it was offering $540 million of 2020 Senior Secured Notes which, if successful, should generate net proceeds of around $491.4 million. The funds are going to be used to repay all outstanding amounts under its existing revolving credit facility and for general corporate purposes.
Cliffs Natural Resources Inc is suffering from an overall decline in the price of coal and other energy commodity prices. The stock has seen its value drop by 28.99% so far this year, vastly underperforming the S&P 500 which is up 0.10% for the same period. With declining quarterly revenue growth (yoy) of -15.20% and return on investment (ttm) of -908.90% the stock is definitely on the lower end of its value, but unless there is a significant shift in the coal sector as a whole, it is better to sell than hold this stock at this time.
Netlist, Inc. (NASDAQ:NLST) lost $0.671 to finish the day at a closing price of $0.679. The drastic 49.70% decline in value came on a day when the stock also traded for as little as $0.52, a new 52 week low for the California-based memory subsystems designer and seller. The $57.58 million market cap company had a high trading volume of 8.08 million yesterday, a figure which is 7.573 million higher than its 30 day average trading volume of 0.507 million. The stock, however, gained 11.91% during afterhours trading to move to a value of $0.760.
Netlist, Inc has been underperforming the S&P 500 over the past one year, with the stock down 63.04% compared to the index which is up 11.25% over the same period. Yesterday’s loss has now pushed the RSI down from over 48 to 25.55 and should mean that share price will rebound over the near term, making it a good opportunity to buy while the stock is potentially significantly undervalued, although it is unlikely to meet its one year target estimate of $2.50 anytime soon.
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