Cleveland-Cliffs CEO makes colorful comments, calls out analyst on call
Cleveland-Cliffs CEO Lourenco Goncalves, while answering a question about returning cash to shareholders said, some analysts and short-sellers don't understand Cliff's business or even their own businesses. Goncalves went on to say "You guys should resign for your lack of knowledge of things." Goncalves continued, "You are a disaster. You are an embarrassment to your firms." Goncalves said the company will use money to reward long-term shareholders and if their stock continue to drop based on "these kids that play on computers and someone else's money, we are going to buy back stock. We are going to screw these guys so badly that they just won't be able to quit. They will have to commit suicide." Goncalves pushed further, "We are going to screw these guys so badly and it will be fun to watch." Goncalves also referred to Japan as a little kid; a little brother to the U.S. and noted that Japan is benefiting a lot from Section 232 "because the Japanese can't stand up to the Chinese on their own." Goncalves also referred to China as a bully and we, the U.S., are standing up against the bully. Following his statements on China, Goncalves asked the operator if there was someone waiting in the question queue named Matthew Korn, "he calls himself an analyst and he works for Goldman Sachs." The operator replied that Matthew Korn was not waiting to ask a question, which prompted Goncalves to call out Korn. "If you're on the call it is still 10:42. Why don't you ask a freaking question? I'll be happy to answer." Once the Q&A portion concluded, Goncalves called out Korn once more, "Mathew Korn from Goldman Sachs, you can run but you can't hide. I will see you at the Goldman Sachs conference soon." Goncalves instructed Korn to "bring the guy from the commodities desk" with him. "It's going to be bad, but its going to be worse if you're by yourself," Goncalves concluded. Comments provided during Q3 earnings conference call. Shares of Cleveland-Cliffs are down 5.6% in mid-day trading to $10.84 per share.