Cleveland-Cliffs (CLF) Nosedives on 'Sell' Reco

We recently published 10 Firms Crashing Harder Than Wall Street. Cleveland-Cliffs Inc. (NYSE:CLF) is one of the worst performers on Tuesday.

Cleveland-Cliffs nosedived by 17.24 percent on Tuesday to close at $13.39 apiece, as investors resorted to profit-taking while taking path from an investment firm’s “sell” recommendation.

After surging to a new all-time high on Monday, Cleveland-Cliffs Inc. (NYSE:CLF) fell sharply after Wells Fargo told investors to “sell,” while giving the company an $11 price target.

The downgrade followed Cleveland-Cliffs Inc. (NYSE:CLF) that it would diversify from steelmaking into rare earths mining in a bid to support government goals to prop up domestic supply.

The company added that it officially kicked off its expansion efforts, with the exploration rare earths potential of two sites in Michigan and Minnesota.

“We don’t know of other deposits in the region, and would be skeptical of an attractive return, absent further information,” Wells Fargo said in its market note.

In the third quarter of the year, Cleveland-Cliffs Inc. (NYSE:CLF) widened its net loss attributable to shareholders by 2.87 percent to $251 million from $244 million in the same period last year. Revenues, on the other hand, inched up by 2.8 percent to $4.7 billion from $4.57 billion year-on-year.

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Disclosure: None. This article is originally published at Insider Monkey.