Northern Dynasty Minerals Ltd (NYSEMKT: NAK) is off to another incredible run in the market today. This is something you wouldn’t expect if you were to pay too much attention to the Kerrisdale short report on the stock a short while ago. However, investors are proving that Kerrisdale was so very wrong! In fact, today is yet another day where we’re seeing such strong gains that our partners at Trade Ideas were prompted to alert us. At the moment (11:10), NAK is trading at $1.98 per share after a gain of $0.16 per share (9.07%) thus far today.
Kerrisdale Silently Admits It Was Wrong About NAK
As mentioned above, Kerrisdale recently released a short side report on Northern Dynasty Minerals, causing the stock to take a dive. In fact, it lost around 50% as a result of that report. However, it seems as though Kerrisdale has quietly changed their mind. The company just recently deleted its short position, meaning it must cover and liquidate… as @SeanPSalazar put it… SHORT SQUEEZE!
$NAK kerrisdale capital just deleted short position from their website. KILL. SHORT SQUEEZE. They must cover and liquidate. Burned on STRP
— Sean Salazar (@SeanPSalazar) April 10, 2017
Why Kerrisdale Was Wrong About NAK
At the end of the day, Kerrisdale’s problem with the company had everything to do with the Pebble Project in Alaska. The analysts pretty much stated that the project was far too expensive, and that chances of getting the permits they needed were slim to none. Well, I’m sorry Kerrisdale, you missed the nail and hit your thumb with this one!
The truth of the matter is that a 1-week stay of proceedings was requested by both NAK and the EPA surrounding the permit issue. The stay was requested so that the two could finish negotiating a settlement and get the required approvals underway. That doesn’t quite sound like permits are going to be nearly impossible to come by. In fact, it sounds like at the end of the stay – literally tomorrow, if things go well – this stock could double!
Onto the expense side of things… There’s no denying the fact that building one of THE WORLD’S LARGEST MINES is going to be expensive. In fact, it is expected to come in around $5 billion. However, Kerrisdale’s attempts to scare investors with a high ball figure of $11 billion or more are simply outlandish! Sure, $5 billion is a good chunk of money, but it sounds a heck of a lot better than $11 billion or more!
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The Bottom Line Here
The bottom line here is that, while I respect those at Kerrisdale that try to provide a clear picture of what to expect, they missed the mark. At the end of the day NAK has the ability to build the goose that lays the golden eggs here, and while the price tag may be steep, it’s hard to make money without spending it. Get ready folks, when the EPA battle is over (which could happen any minute) this thing could soar!
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