# Cliff Natural Resources - CLF



## humble_pie (Jun 7, 2009)

i first met Cliff when metatheta began complaining about bad luck with Walt & Cliff options.

since theta's brief romance, cliff has fallen further into the garbage can. Now the charts are looking bullish to me.

i was happily digging out a nice paired long-term option strategy when news surfaced the other day that hedge fund manager donald drapkin has upped his position in cliff to more than 5% & he is out to butcher the poor old miner into oblivion.

here's drapkin, one glance at his face should be enough to tell you that he's serious:
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i had to stop with the options idea because if drapkin succeeds, he'll split cliff into pieces & the options of today will become frozen little post-reorg pieces that won't ever trade, so there'll be no future in em.

instead i bought a nice mining spread in RIO (too big for drapkin or anybody else to mess up) but Cliff still sticks in my mind. There'd be no way that toehold hedge sniffer drapkin would ever come near a clumsy old steel-toed miner like cliff unless there were true value locked up inside.

drapkin wants to spin off cliff's canadian & asian holdings to existing shareholders, leaving just the US mining properties which are principally concentrated in the great lakes area. He wants the dividend to be hugely increased. He wants to see a trimmed-down Cliff worth north of $50 before he's done. The story will be a leveraged bet on a US mining/steel renascence in the rust belt.

some say this is already happening.


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