πŸš€ In-depth DD on Cleveland and Cliffs. Fundamentals, Short Interest, and Potential Catalysts. 🌚

πŸš€πŸš€πŸš€πŸŒš

Just like most of the other people posting about it here lately, I don't really know anything at all about the company Cleveland-Cliffs ($CLF). That being said, I think its safe bet based on the name though that it has something to do with both the city of Cleveland and also (obviously) cliffs.
 
While I can't tell you much about $CLF, I can tell you quite a bit about the city of Cleveland and the wonderful geological features known as "cliffs", and why I am bullish as fuck on both of those.
 

Fundamentals

I know for most of you WSB newcomers you may be used to trading on emotions and memes, but its important to look at the fundamentals as well, so before we get to the memes lets start with some fundamentals and important background information.
 
Cleveland:

  • Founded July 22, 1796 (source)
  • Cleveland is the second largest city in the state of Ohio with a population of 381,009 (source)
  • Cleveland had a 2019 GDP of $118.17 Billion, up ~$1.5b from 2018, and nearly $13b since 2009. (source)
  • As of 2021 Cleveland has an annual budget of $1.8 billion (source)  

Cliffs:

  • A cliff is a mass of rock that rises very high and is almost vertical, like a wall (source)
  • Cliffs have been around for hundreds of millions of years, and show no signs of going anywhere anytime soon. Fossils dating back 313 million years have been found inside of cliffs. (source)
  • Cliffs are known for forming major geographical features such as waterfalls. (Source)
  • Cliffs are the sole required equipment for the popular sport of cliff jumping (source)
     

Indications of Substantial Short Interest

Now unfortunately the SEC does not regulate municipalities or geological features thus hedgefunds are not required to report their short positions in these areas. That said there are certainly some major indicators that these funds likely have significant short positions in both Cleveland and cliffs.
 
Cliffs:

  • The sport of "Freestyle Cliff Jumping" emerged in the 21st century, and has exploded in popularity. So much so that Redbull even now hosts a global cliff diving world series. (source). Despite this clear rise in popularity of cliff related sporting, we have not seen a correlated expansion in the number of cliffs in the world. This is clearly a sign that the growth rate of cliffs is being heavily suppressed by short sellers.
  • Cliffs are eroding at increasing rates. As of 2016 it was found that England's famous white cliffs have been eroding at 10 times their previous rate over the past 150 years (source). 150 years before 2016 was 1866. What could have happened in England in 1866 to kick off this increased erosion of cliffs? In 1866 the bank Overend, Gurney and Company took on substantial investments in long-term investments rather than holding short-term cash reserves as was necessary and found itself in a liquidity crisis that bankrupted the company leading to a financial collapse known the "Panic of 1866" in England (source). That begs the question, what were these investments that caused them such trouble? Could it be that they were illegally naked shorting the white cliffs? The timeline makes too much sense to ignore. The continued increased deterioration rates of these cliffs indicate that its likely still going on. Overend, Gurney and Compnay may have failed but certainly someone further up the chain took over their positions (Think of what we saw recently with Melvin Capital and Citadel)

 
Cleveland:

  • Despite Cleveland's solid fundamentals, year to year growth of more than $1.5b and growth of $13b since 2009, Clevelands overall economic growth ranks 2nd to last among the 66 largest cities in the United States. (source) clearly short sellers are hammering this great city into the ground.
  • The 2011 hit movie "Kill The Irishman"? Filmed in and based on events in the city of Cleveland. Who's the head of notorious short selling hedgefund Citadel? None other than Ken Griffin. Where's the surname Griffin popular? Griffin is a surname of Irish, English and Welsh origin (source). Now we don't want to go full blown conspiracy nut here, but this looks like a pretty clear signal from the city of Cleveland that they want some serious revenge on our boy Ken Griffin. They must know that we own the entire float and there is illegal naked short selling going on.

 

πŸš€πŸš€πŸš€ To The Moon? 🌚

Even if we completely ignore the obvious short interest in both Cleveland and cliffs, if we look closely, they're both clearly trying to speak to us about an upcoming moonshot. At the end of the day it's really just like Ryan Cohen and DFVs incredibly obvious hints in their tweets.
 
Cliffs:

  • Trivia time. Where is the largest cliff in the solar system? Yup. Already waiting for us on the god damn moon 🌚. Uranus' moon Miranda to be specific. The Verona Rupes cliff is estimated to be a whopping 12 miles high. (source) nothing says "πŸš€πŸš€πŸš€ cliffs to the 🌚" like a giant cliff on an actual moon. We're not even talking just earth's moon, we're talking a moon over 1.6 billion miles away.
     

Cleveland:

  • Cleveland, Ohio is designated as a GAMMA+ city by the Globalization and World Rankings Research Institute (source).
  • NASA's πŸš€πŸš€πŸš€ Glenn Research Center is based in Cleveland. They specialize in space propulsion and cryogenic fluids management. Their website is literally people (apes?) on the moon (source).
  • Where does Cleveland's NBA team the Cavaliers play? That's right. ROCKET πŸš€πŸš€πŸš€ MORTGAGE FIELDHOUSE. (source).
     

Potential Upcoming Catalysts

What kind of πŸš€πŸš€πŸš€ fuel could be coming up to Cleveland and cliffs to the 🌚? It could be anything but here are some potential catalysts I've found in my research.
 
Cliffs:

  • Global Warming. Melting glacial ice and rising sea levels may unintuitively actually benefit cliffs. Sure, existing cliffs may face increased rates of erosion but said erosion also has the potential to create new cliffs as well. Everyone knows that hip new cliff is way cooler than a boring hundred million year old cliff. Now new cliffs being created by erosion from rising sea levels will likely take thousands of years, but melting glacial ice could also provide a shorter term catalyst. For all we know there may be some fantastic cliffs hidden under all of that ice. Ice melting away to reveal previously unknown cliffs could be a massive catalyst.
     

Cleveland:

  • Return of the King πŸ‘‘? LeBron James has 2 years left on his contract with the Lakers. When it ends he will be 38 years old and likely at or nearing retirement. It would only be fitting for him to come back to Cleveland where it all started to finish up his career. The return of LeBron would be a massive financial boon for the city of Cleveland, likely blowing short sellers out of the water and inducing game ending margin calls πŸš€πŸš€πŸš€.

  • The Hyperloop Project. There are plans in place for a hyperloop train between Cleveland and Chicago that could cover the 300+ miles in only 28 minutes. Recently plans were announced to expand this project to connected Cleveland and New York as well. (source). Having such quick/easy access to two of countries largest cities could be a huge draw to living in the city of Cleveland.
     

$CLF:

  • WSB apes taking an obvious shitpost too seriously and actually buying a stock because of it. (source)
     

Positions

In a tent on a cliff just outside of Cleveland.

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