Huge # shares shorted = huge upside
Northern Dynasty Minerals LTD.
shares shorted as of 17 Aug 2018
Shares Float 276,441,100
Short Interest (Shares Shorted) 22,882,300
Short Percent of Float 8.28 %
Short Interest - Previous reporting date: 22,602,500
Short Interest increased 279,800
Short Interest Ratio (Days To Cover) 21.1
Means that under average volume of shares traded, it would take 21.1 days of trading to cover all the shorts.
Because the stock market is open only 5 days of the week, this means that it would take over a month for the shorts to exit their trades.
This is not what happens.
Once people, and groups, that have NAK shorts, see that the price is solidly rising above the base price ($0.50) they will start to cover their shorts, which means that they have to buy shares of NAK.
Because a large number of people/groups that short stocks, do so when they see that a stock is moving up above a long term base price, it means that A LOT OF SHORTS WILL START TO BUY BACK NAK SHARES.
This will cause a spike in the stock's price, which will cause more shorts to cover their position.
Some shorts, usually institutions that have shorted the stock, will hold on and not cover their shorts. But the majority of shorts will look at the rapid share price, and decide that they had better cover their shorts.
This will lead to a large increase in shorts buying back NAK shares, and so NAK's large short position will be liquidated much quicker than 21.1 trading days.
It will result in a large increase in NAK's stock price. By that time we may have more information on how the permitting process is advancing, and if it looks promising, this would tend to support the stock's now higher price.
Because large mining companies are being taxed out of existence in foreign countries, such as Africa, they will have a strong incentive to form a joint venture with Northern Dynasty. The Pebble property is in Alaska, USA, a law abiding country, Plus, PEBBLE is the LARGEST MINE of its kind IN THE WORLD!
May take some time, but so what? Our time will come. And BOY, WILL IT COME!!!
Talking about selling, in Friday's trading, there was a spike down in its price, and at that time 250,000 shares traded. Could have been an institution, or wealthy investor, capitulating, and selling their shares at any price. So there are now a lot fewer shares available for selling.
