http://www.businessinsider.com/
Lourenco Goncalves, CEO of the mining and natural resources company Cliffs Natural, doesn’t take questions from haters.
On Cliffs’ earnings conference call on Tuesday morning, Goncalves told Wells Fargo analyst Sam Dubinsky that he wouldn’t answer Dubinsky’s questions because “you already know everything about my company.”
“You have a $4 price target and you think we can’t sell assets, so I’m going to take the next question, I’m not going to answer you,” Goncalves said. It is a jarring exchange.
In a note to clients following the report, Dubinsky wrote that Goncalves was “pretty bold” on the earnings call. It was also Goncalves’ first earnings call as CEO since being named to the position on Aug. 7.
And the exchange, or really just the shutting down of Dubinsky’s questions by Goncalves, shows some of the complications inherent in the relationship between companies and analysts.
It is Dubinsky’s job, as a research analyst, to publish his assessment of the companies in his coverage area and, based on this work, publish a recommendation on how he believes the stock will perform going forward.
But as for his assessment of the company’s quarter and outlook, Dubinsky wrote: “Cliffs reported upside to Q3 estimates and set a pretty high bar across the board when discussing the outcome of Canada, cost reductions, and dividend safety. We’re cautious on shares due to our bearish stance on iron ore pricing, skepticism over asset sales, and the high debt load.”
He added that there was “too much uncertainty in both the macro backdrop and Cliffs’ strategy to change our rating.”
Dubinsky has an “Underperform” rating and valuation range of $4 to $7 on the stock, though he did raise earnings estimates for Cliffs’ fourth quarter.
For the rest of this article, click here: http://www.businessinsider.com/cliffs-natural-ceo-calls-out-wells-fargo-analyst-2014-10