This is what has happened recently, and in the last very few minutes, Little Shorty looks to have played some more dirty tricks.
The Short Position has been COVERING Its Short position dramatically. The Short position covered at least 1/2 million shares, and it may have been much more than that by now, as I'm not sure what the new Short position records will show.
The Short position was a bit over 2 million shares in November. The theory is that the Short position is dominated by one player, which may be ( very likely) a small investment outfit which specializes in gold exploration stocks in Canada. There are well over 1000 such stocks, and most are penny stocks.
Ask people on this board who they think the Short Player is. It is pretty well understood.
The process of turning a gold exploration company into a bought out company by Big Gold company, or for the gold exploration company to morph into an actual gold miner is a long process. This gives an entity that Shorts a gold exploration stock lots of time to use various Short Sale tactics to manipulate the stock price to their advantage.
Shorting these gold exploration stocks has big advantages for the shorter. These are generally low volume stocks, the Shorter has lots of time, and news flow for these companies is slow.
I call the main Short player in NFG ' Little Shorty'. Little Shorty isn't even located in Canada, in my view. I believe this gives Little Shorty another advantage, which is that it is much harder to sue Little Shorty. One would think that an investment outfit with a specialty in Canadian gold exploration stocks would be located in Canada, but this I assume is the reason Little Shorty isn't in Canada.
Little Shorty apparently has decided it is time to COVER his SHORT position in NFG.
In the past year plus time an apparent professional Basher has destroyed the Stockhouse message board for NFG. Does this Basher have a connection to Little Shorty?.....Well, the Basher admitted he knows quite a bit about Little Shorty. I have assumed the Basher is paid.
Little Shorty dramatically reduced the Short position in the last two months. Then, NFG rallied strongly to $6.50 CAD. Previously, it appeared to me that the Short Position would CAP rallies by putting up walls of shares for sale to stop a rally. But, on this last rally, it appeared that the Short wasn't able to stop the rally easily.
My view was that this frightened the Short Position, and they realized that they should have COVERED their Short position this past summer.
My belief is that Little Shorty realizes that the news flow from NFG going forward is going to be good, and sometimes may be spectacular. Also, gold is acting strong, so is silver, and the precious metal stocks are starting to act strong.
Realizing that NFG is easily one of the highest quality gold exploration stocks anywhere, Little Shorty wants to cover ASAP. His time is up on this stock, and the last rally proved that. Little Shorty got scared, and now he wants to COVER ASAP.
LITTLE SHORTY got lucky. The recent Charity FLow Thru financing saved him. I can't fully explain the ins and outs of the Charity financing, but the bottom line is that these new shares were given to charities, and these shares have to find a new home with actual investors. Thus, Little Shorty was 'Saved by the bell'.. While these shares are passed on from the charities, Little Shorty can buy these shares as they become available. But, time is still ticking for Little Shorty. Soon, all the shares from this recent financing will have found a new permanent home
Most NFG/NFGC shares are held by long term investors, such as Palisades and Sprott, but even most of the retail holders are in for the long term. So, it isn't easy for Little Shorty to COVER the million plus shares he is likely still short.
Today was the perfect example of Little Shortys attempt to manipulate the share price. I watched as in the last few minutes shares were dumped into the bids, pushing the price down around ten cents, while large asks were flashed on level 2. The purpose of ' flashing' bids of 5000 or ten thousand shares for a second or so is to prevent people from buying these shares because the order is immediately canceled before anyone can act. Little Shorty wants to drive the price down in the last few minutes without having to sell tens of thousands of MORE shares short, but making it APPEAR that there are big orders of shares wanting to sell, but this is just a mirage......he is trying to COVER, not increase his Short position......but, he wants to COVER as cheaply as possible.
So, Little Shorty has the dilema of wanting to COVER ASAP, but, NFG is so tightly held, that it's not easy to get much shares sold. Soon, the Charity shares will have found a new home. So, Little Shorty will TRY to push the share price down AND Shake shares out of the weak hands of the Charity share temporary holders.
Ltlle Shorty knows this is his LAST window to COVER his SHORT position.
He senses the reality is that NFG has entered an uptrend which may well be powerful.
My advice to Charity share holders is just to hold on for a month or even more. The share price of NFG will be headed up. Any ability Little Shorty can do to try to pry and push the share price lower will be fleeting and Short lived. Remember, Little Shorty has to ACTUALLY Sell MORE shares Short in order to push the share price down. His strategy is that if he sells MORE shares short, this will create some degree of selling from existing shareholders, such that he will be able to BUY MORE shares than he sells Short in trying to push the stock down. If buyers keep coming in to compete with Little Shorty in buying shares, his manipulation efforts of selling more shares short fails, is futile.
This is Little Shorty's dilema. He wants to COVER ASAP, BEFORE strong news possibly catapults NFG share price higher.