Is Cleveland-Cliffs Stock a No-Brainer Steel Play?
Not too long ago, Cleveland-Cliffs (NYSE: CLF) didn't make steel -- it was just a supplier to the steel industry. Then a series of huge acquisitions changed the story. Now Cleveland-Cliffs is one of the largest and most important steel makers in North America. But is that enough to make it a no-brainer steel play? It depends on what you're looking for.
At this point, Cleveland-Cliffs is a vertically integrated steel maker. That means it owns steel mills, but it also owns the key inputs it requires to make steel, like iron ore. Although the company makes some fabricated and specialized products out of its steel, most of its production is really just commodity-based. So steel prices have a big effect on the top and bottom lines.
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Source Fool.com
