Northern Dynasty Minerals Ltd (NYSEMKT: NAK)
Northern Dynasty Minerals is having a pretty strong day in the market today – a much needed one, considering the massive declines we saw earlier in the week on the Kerrisdale short-side report. The gains are the result of a rebuttal released by the company. Below, we’ll talk about what we’re seeing from the stock, the rebuttal, and what we’ll be watching for with regard to NAK ahead.
What We’re Seeing From NAK
As mentioned above, Northern Dynasty Minerals is having a pretty good day in the market today. At the opening bell, the stock was trading in the green; and throughout the day, it has held onto and expanded its profits. At the moment (11:20), NAK is trading at $2.37 per share after a gain of $0.11 per share (4.87%) thus far today.
Why The Stock Is Up
As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains on NAK. As soon as we received the alert, the CNA Finance team started digging to see exactly what was causing the movement. It didn’t take long to uncover the story. The gains are the result of the company’s response to the sell-side report by Kerrisdale that was released early this morning. In particular, Northern Dynasty Minerals requested that those reading the short report:
- Understand that Kerrisdale stands to make serious profits if the price of NAK takes a dive.
- Kerrisdale has an aggressive history of short selling and activism. However, they do not have experience in the mining company nor have they disclosed any record of success in mining investments or issuing mining valuations.
- The short report relies on anonymous co-authors. NAK pointed out that it is not disclosed if these anonymous authors hold short positions in the stock.
- Kerrisdale personnel have not taken the time to visit the Pebble Project, nor have they had discussions with Northern Dynasty’s technical team or executives.
- At the end of the day, what the company really wants investors to think about is the idea that Kerrisdale is a troubled organization. The rebuttal points out that the short-side analysts have been in the news for major client and staff defections and alleged senior staff personal misconduct.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be watching NAK incredibly closely. In particular, we’ll continue to watch the war between the company and Kerrisdale. We’ll also be watching the hard numbers and forming our own opinion as the story continues to break. Stay in touch, we’ll be bringing you the updates as they happen!
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