Thomson Reuters






By Ryan Vlastelica


NEW YORK, Oct 3 (Reuters) - Shares of Cliffs Natural
Resources Inc tumbled on Friday, extending the stock's
recent weakness after Nomura downgraded it to "reduce" from
"buy."


The firm also slashed its price target on the stock,
dropping it from $18 to $5 to reflect "sharply reduced net asset
value" following a decline in iron ore prices.


The price decline "has significant negative implications for
medium-term earnings and should severely limit strategic options
with regards to potential asset sales." Nomura forecast that the
company would report a loss in fiscal 2014.


Cliffs lost 14 percent to $8.59 as the biggest percentage
decliner on the New York Stock Exchange. It was the biggest
one-day drop for the stock since February 2013, and its volume
of 14.7 million shares was well above its 50-day average of 7.7
million.


The stock has been pressured throughout 2014, losing more
than two-thirds of its value. It is on track for its 11th
decline of the past 13 sessions.