#2: Cliffs Natural Resources
Another metals and mining stock that has been battered by the China slowdown is Cliffs Natural Resources (CLF). This Ohio-based materials stock operates mines for both iron ore and metallurgical coal, which is used to turn iron into steel.
What with the lack of industrial demand globally, but particularly in China, Cliffs has been brutalized during the past few years. In fact, the 46% decline making CLF one of 2013’s worst stocks is nothing compared to a roughly 80% decline since its 2011 peak of about $100 a share.
Cliffs operates in North America, Latin America and the Pacific, so the strong dollar has made the profits even harder to come by as exchange rates create a headwind for international sales.
Cliffs has managed to return to profitability; however, the company has seen six consecutive quarters of year-over-year revenue decline… so it’s hard to think of Cliffs as at or near the bottom until revenue actually turns around, or at least stops slipping.