Trade Tracker: Jim Lebenthal buys more Cleveland-Cliffs

Core Viewpoint - The narrative surrounding Cleveland Cliffs is shifting, with a focus on improving auto demand and strategic partnerships rather than solely on rare earths [3][4]. Company Developments - Cleveland Cliffs has signed contracts with major OEMs for favorable pricing over the next two to three years, indicating a positive outlook for auto production, which constitutes one-third of their business [4]. - The company has entered a memorandum of understanding with an international steel company to leverage idle assets, which is seen as a significant development despite differing opinions on its impact [5]. - A recent order from the Department of War for $400 million of grain-oriented electrical steel is aimed at building a national strategic stockpile, highlighting the company's role in national security [11][12]. Financial Performance - Despite the stock experiencing a downturn, the company's EBITDA came in better than expected, suggesting underlying profitability even amidst negative gross margins [10]. - The stock's technical indicators, such as the 200-day moving average, are showing positive trends, indicating potential for recovery [6][7]. Market Sentiment - The stock was downgraded to underweight by Wells Fargo, citing excess exuberance, but there is a contrasting view that the current price presents a buying opportunity [2][3][7].