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There are days when we need affirmation: I'm good enough, smart enough and, doggone it, people like me. Then there are days when you have to question the very last part of that affirmation. If anyone holds or has held Cliffs Natural Resources (CLF), you know what I'm talking about. I picked up CLF along with Walter Energy (WLT) on Feb. 4 with a stop set at $32.90. Not good. Not good at all. I've been stopped out of the trade but, unfortunately, stops aren't much help when you get a large gap lower. So even though my stop was set at $32.90, it was executed at $30.90. The stock comprised 0.75% of the portfolio, so the net resulting drag was around 12 basis points, which is certainly not the end of the world, but the gap lower produced a loss slightly greater than where I wanted to limit my risk.

After reading the earnings report, I have found little to like, especially in the way of management. Wall Street will no doubt question not only CLF's acquisitions going forward, but the huge dividend cut only a year after a huge boost is a huge negative. Plain and simple, it means CLF's management has no vision on the company's cash flow or prospects beyond the immediate future. I don't want to be involved if I can't trust the management. Not only are the technicals broken, but the fundamentals are broken and management is lost. Therefore, it is a loss I must take and move on....173 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.