Steeled for losses

A few years ago, a TV pundit had the CEO of Cliffs Natural Resources on his show. Not only did the CEO seem to have a great strategy for the future, but the pundit recommended buying the stock, too. It seemed like a solid investment to me, so I bought 100 shares at $66 per share. The stock started bleeding out, though, and I bought more shares at $35 and more at $17. Here’s hoping that iron ore prices start going back up. — S., online

THE FOOL RESPONDS >> Unfortunately, even though you wrote to us several years ago, your shares (if you’re still holding them) are still underwater. The good news is that after falling to almost $1 per share in early 2016, the shares have been rising — recently trading at nearly $11 apiece.

What’s going on? Well, Cliffs (now named Cleveland-Cliffs) was mainly in the coal and iron-ore businesses, which faced major challenges: The country was moving

away from fossil fuels and depending more on cheap imported steel.

The company, which is America’s largest and oldest iron-ore miner, sold its coal operations and has been posting profits in recent years. That’s good, but it doesn’t necessarily mean you should hang on to your shares. Only do so if you’re fairly convinced the company’s future is bright. Otherwise, look for companies that are healthy and growing and that seem to be bargains.