Sold CLF

I sold out of my Cliffs Natural Resources (CLF) position this morning for $71.00 a share, as the net profit margin is narrowing. It represents a $16.30 per share loss from the $87.30 purchase last August. CLF is in a commoditized industry (steel), so it was not a pure Buffett play.

This loss speaks well to my decision to go back to college and invest there in an economics degree.

Bought NYX

I have a gut feeling that something positive will develop for the merger prospects between NYSE and Euronext-Deutshe Borse, even while the European Union balks at the merger. At a p/e ratio of 9.9 and with longterm debt of 3 times net income, I just see too much potential for either a merger or in independent operation going forward to stay on the sidelines. These companies have a monopolistic control of stock trading, either way.

The current ratio is only 1.04, but the business doesn't need tons of cash to operate, as I see it. While I'm stepping a little out of my comfort zone, I'm buying a position in NYX and will continue to see what happens in the coming days and weeks before buying more.