Northern Dynasty Minerals Ltd (NYSEMKT: NAK) had an incredible week last week. However, you wouldn’t know it by looking at the stock today. Unfortunately, it is taking a dive as shorts wage an attack. Of course, our partners at Trade Ideas were the first to alert us to the losses. At the moment (11:20), NAK is trading at $1.70 per share after a loss of $0.15 per share (8.33%) thus far today.
NAK Longs Need To Fight Back
The truth of the matter is that there is no realistic reason for declines on Northern Dynasty Minerals today. If anything, the stock should continue running up. Nonetheless, shorts seem to have taken hold of the stock, pushing it downward. However, the longs can beat them at their own game.
The short and distort game is a relatively simple one. Essentially, short positions are purchased and a slew of reasons to sell the stock start to hit message boards. However, it is a very dangerous game, and if longs fight back, they can feed the shorts the losses that they are trying to force the longs to eat.
How To Fight Back
Fighting back against a short attack like the one that we’re seeing on NAK at the moment is a relatively simple thing to do. Buy shares at the lows. You see, if the longs are able to successfully push the stock back up, all of the short positions the attackers purchased will close at a loss. Not to mention, there’s a very good reason to be long on NAK right now.
You see, Northern Dynasty Minerals has pumped massive amounts of resources into what is known as the Pebble Project. While the EPA has been blocking the company from getting necessary permits for some time, that road block was torn down last week as the company reached a settlement with the EPA. Under the settlement, NAK can now apply for the required permits, giving it the ability to move forward in building one of the largest metals mines in the world! In a statement, Northern Dynasty Minerals CEO Ron Thiessen had the following to say about the settlement:
“From the outset of this unfortunate saga, we’ve asked for nothing more than fairness and due process under the law – the right to propose a development plan for Pebble and have it assessed against the robust environmental regulations and rigorous permitting requirements enforced in Alaska and the United States… Today’s settlement gives us precisely that, the same treatment every developer and investor in a stable, first world country should expect.”
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The Bottom Line
The bottom line here is that, while shorts are indeed waging an attack on NAK right now, it is an unjustified ploy to get hold of the money that honest investors have put into a company on the verge of a big break. So, if you’re long on the stock, consider fighting back. If enough do, the shorts will be forced to eat the same losses they are working to shovel down your throat!
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