Cliffs Natural Resources Inc (CLF): Would the CEO’s Departure Help This Mining Stock?

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BHP Billiton Limited (ADR) (NYSE:BHP) trades at a forward P/E of 18.2 and P/B of 2.33, while Rio Tinto plc (ADR) (NYSE:RIO) trades at a forward P/E of 7 and P/B of 1.61. Both stocks are dividend plays. BHP Billiton yields 3.88%. Rio Tinto yields 4.49%. Analysts’ targets are favorable as well, giving BHP Billiton 32% upside and Rio Tinto 59% upside. To me, this looks overoptimistic.

Bottom line

I think that the departure of the CEO does not change the outlook for Cliffs Natural Resources Inc (NYSE:CLF). If you like risk and can afford it, this is a very interesting stock. If you are conservative, stay away from it as it will be volatile and can fall further if the worst-case scenario comes into play in the iron ore market. BHP Billiton Limited (ADR) (NYSE:BHP) and Rio Tinto plc (ADR) (NYSE:RIO) are more diversified. Their dividend yields look attractive, however, they are not free from the downside risk either.

Vladimir Zernov has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Would the CEO’s Departure Help This Mining Stock? originally appeared on Fool.com.

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