Cliffs Natural Resources
As with U.S. Steel, Cliffs Natural Resources (CLF) has been demolished in 2013 thanks to a slowdown in China gutting commodity demand — in this case, for coal as an energy source.
But bigger-picture, there are serious concerns about coal as an energy source. China has struggled mightily to control its pollution and carbon emissions that have ramped up as a result of rapid industrialization, and coal is hardly one of the favorite energy sources in the West as developed nations move away from this fossil fuel.
It’s a tough outlook for Cliffs, then, both in the short-term and the longer-term. And with natural gas still relatively cheap and abundant but cleaner-burning, it seems unlikely for the coal outlook (or the trajectory of CLF) to change.
Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. Write him at firstname.lastname@example.org or follow him on Twitter at @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.