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The Director General of
Cleveland-Cliffs
Inc.
CLF -3.75%
targeted a
Goldman Sachs
analyst and attacked against the traders who, he said, buy back the shares of the company during the call for results in the third quarter on Friday.
Lourenco Goncalves, president and CEO of the mining and resource company, said Matthew Korn, an analyst at Goldman, who was not present at the call, "a disaster".
In an interview that followed the call, Mr Goncalves said that his anger towards Mr Korn implied a research note published Friday by analyst Goldman, stating that the profits of the Cleveland-Cliffs' continuing operations were 4 cents below its estimates. Mr Goncalves said the analyst had used the wrong number of diluted shares in his calculations.
Goldman Sachs provided the note to the Wall Street Journal but declined to comment. Mr. Korn did not respond to a request for comment.
Mr. Goncalves said in an interview that he did not regret his actions.
"That's what I am and I will not change," he said.
Mr. Goncalves also called the traders who, he said, bet against his company "children playing with computers and money from someone else". He called them "parasites" during the interview.
"We're going to fuck those guys so badly that I do not think they can just quit. They will have to commit suicide, "he said at the phone call, according to the audio of the teleconference provided by FactSet.
Mr. Goncalves' explosion against short selling is a reminder of Tesla CEO Elon Musk's commitment to "burn" short sellers after a call from analysts in May. At the next call of the results in August, Mr Musk apologized "for his rudeness in the previous call".
Cleveland-Cliffs shares tumbled about 9% Friday but closed down 3.75%. The company's shares have increased by more than 53% for the year.
For the third quarter, the Cleveland-based company reported net income of $ 438 million, or $ 1.41 per share, up from $ 22 million or 18 cents a share a year ago. Revenues reached $ 742 million against $ 597 million a year ago.
Mr. Goncalves also said he was upset that attention was focused on his comments during teleconferences rather than on the company's performance. "I was talking about bad math," he says.
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