Cliffs Natural Resources (CLF), the largest producer of iron ore pellets in the U.S., recorded third-quarter 2009 profits of 45 cents, significantly lower than last year’s earnings of $1.61 per share, on weak iron volumes and prices. However, reported earnings were in contrast to the Zacks Consensus Estimate of a loss of 6 cents. Consistent with weaker year-over-year global demand for iron ore -- the steelmaking raw material -- revenues in the quarter tumbled 44% to $666.4 million. Performance by Segments North American Iron Ore: Sales in the segment slipped 47% to $428.2 million on a 31% decline in volumes to 5.5 million tons. Iron ore production halved to 4.6 million tons in the quarter. Demand for iron ore pellets remained weak year over year despite steel demand picking up in the last quarter. Capacity utilization in the North American steel industry ramped from 49% in ...

Small Cap Stocks: How to Find the Russell 2000 All Stars

Alex Williams, Advisory Panelist, Investment U

Over the last 52 weeks, 2,725 stocks outperformed the S&P 500. And 2,356 of them – or 87% – were small caps. Trouble is, the small-cap universe, as a whole, can be tough to navigate. Over the same period, the Russell 2000 Index lagged the S&P 500.

The trick is to find the right small-cap stock – one that’s safe, yet growing its business quickly… and rewarding shareholders for taking an early position. Here’s one way to sift through the potent Russell 2000 Index and uncover a winner – using the stock screener of your choice:

Size: Isolate stocks with a market capitalization between $1 billion and $5 billion.

Growth: Screen your results again for companies growing earnings faster than 50% a year. According to TDAmeritrade’s stock screener, we’re already down to 31 companies.

Management Effectiveness: Now, to

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