3 Bearish Notes on This Mining Giant

While there are several reasons to be bullish on Cliffs Natural Resources , these must be weighed against the cautionary tales that tell its story. For Cliffs in particular its reliance on steel and a few major customers for the bulk of its revenue places it in a precarious situation. Due to steel's long life, global growth is the ultimate driver behind Cliffs' success, and the loss of any one of its top customers could significantly impact its stock price. Take a look at this quick video from Motley Fool energy and materials analyst Taylor Muckerman for a little bit more color on these issues and more.

There is more to Cliffs Natural Resources than just these negative issues:
Cliffs Natural Resources has grown from a domestic iron ore producer into an international player in both the iron ore and metallurgical coal markets. It has performed well, relative to many competitors, in a very cyclical industry because of several factors that are likely to remain advantageous for Cliffs' management. For details on these advantages and more, click here now to check out The Motley Fool's brand new premium report on the company.

The article 3 Bearish Notes on This Mining Giant originally appeared on Fool.com.

Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Nucor. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.