Northern Dynasty Minerals Ltd (NYSEMKT: NAK) is off to an incredibly strong day in the market today after a message to shareholders on short selling was sent. Before we get into this, I'd like to say that those who short a great stock like NAK should be beaten senseless. However, current laws will not allow us to feed these idiots their teeth. Nonetheless, there is a way that those who truly believe in Northern Dynasty Minerals can exact revenge. We'll talk about that in a second. Before we do, a quick thanks goes out to our partners at Trade Ideas for being the first to alert us to the gains. At the moment (12:01), NAK is trading at $1.46 per share after a gain of $0.11 per share (7.78%).
A Note From NAK President And CEO Ron Thiessen
First and foremost, let's start with the note that was sent to shareholders by Northern Dynasty Minerals President and CEO Ron Thiessen. The note from NAK management reads as follows:
Dear fellow shareholder,
Based on recent inquiries and feedback received, we are taking this opportunity to provide information that we hope assists in providing transparency on the mechanics of short selling.
Public companies cannot prevent short selling because it is legal. However, to legally short sell a stock the short seller must first borrow the shares.
Who does the short seller in effect borrow the shares from? ….. A company’s existing shareholders’ accounts.
The only people who can do something about short sellers are a company’s shareholders. If you don’t want your shares to be loaned out to short sellers, then you need to talk to your broker to understand how to stop that.
We provide the enclosed publicly available materials for background information. Advice about this issue and any investment related matter should be sought directly from your investment advisor.
Separately, if you are not already “subscribed” to our email distribution list, we encourage you to do so by clicking on the website homepage at http://www.northerndynastyminerals.com/ndm/Home.asp and following the instructions to subscribe.
With thanks for your interest and support of Northern Dynasty,
President & CEO and Director
Breaking Down Reality
Here's the deal my friends. NAK has been consistently battered by short sellers. Those who think their figurative SH*T simply doesn't stink. What they are doing is borrowing YOUR shares in order to sell them short. In doing so, they are driving the price of the stock down in order to take money out of YOUR pocket and put it into theirs. Once again, they should be beaten, but since we can't beat them, let's find something else to do about it!
There Are Two Things These Idiots Need To Steal From NAK Investors, Albeit Legally!
Ultimately, a short seller is a thief in many ways. As mentioned above, they are borrowing YOUR shares without YOUR knowledge, and using them to drive prices down, taking the money out of YOUR pocket and flowing it into theirs. Sure, it's legal, but how do they sleep at night? Nonetheless, there are two things that short sellers need in order for their plans to continuously drag NAK down. Here they are and how you can stop it:
Shares To Borrow – The first thing these thieves need is your shares. After all, if they don't have shares to borrow, they simply can't sell these shares short. Stopping this is a relatively simple process. As the CEO of NAK said, simply call your broker. Tell your broker that you truly believe that NAK is doing great things and you do not want your shares being loaned to idiots who are working to take money out of your pocket. Your broker will inform you of the steps you need to take in order to stop the bleeding.
Declines In Value – The second thing these idiots need in order to take your hard earned money is a decline in the value of the stock. At the end of the day, the Northern Dynasty Minerals shares that are sold short are borrowed and sold. The goal is to buy those shares back at a lower price later, making a profit off of the spread. However, if the price of NAK doesn't fall, well the good guys get to feed the bad guys the losses. To stop this, you'll need to get with your friends and ease their minds when the stock starts to fall, and work to push it back up by buying more!!!
Why Is This All Worth It?
At the end of the day, NAK has something great going for them. That's the Pebble Project. When complete, the Pebble Project will be one of the worlds largest and most fruitful mines. While there has been some speculation with regard to whether or not the company will be able to get their hands on the permits they need, that speculation is gone. A settlement with the EPA gives Northern Dynasty Minerals a pathway to get exactly what they want - permission to move forward with this incredible project.
Nonetheless, short sellers have kept the price of the stock incredibly low. In fact, undervalued isn't even an adequate word to describe the discount currently being offered by NAK shares. At the end of the day, for those that have a strong stomach and a bit of time to wait, NAK could prove to be the goose that lays the golden eggs. Is it worth waiting for your egg? Of course it is!
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on NAK. In particular, we're interested in seeing how the bulls fight back. Regardless, this is one that we really believe in on a long-run level. We'll continue to follow the story closely and bring the news to you as it breaks!
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