Post by
DanWarren on Apr 15, 2024 11:44am
SHORT Position beginning to cover?
FIrst thing (minute) of trading, somebody SCOOPED UP ALL the shares al the way up from 5.35 CAD to 5.60.......100,000 shares......then, of course, covered their tracks by selling into the bids, driving the price down. This is their old, constant MO for the past few years. Scoop up shares, then sell into the bids, to cover up all the buying at higher prices they just did.
Is it the Short position? Or, a big buyer, such as an investment fund, now that NFG is over $5 CAD, and
their Bylaws now allow them to buy a stock if it is over $5 ?
It's a guess.
But, I do recall that in late November, through December, a couple of years ago, after the curious fiasco of having NFGs assay results called into question, and needing to have the assays rechecked, which all turned out to be a nothing burger, as the original assay results were fine all along ( I always suspected that was another dirty trick played by the Short position ...Lil Shorty, as I call the key Short position....who I suspect persuaded some regulator to question NFG on their assay results).
At that incident the Short position was around the size it is now, just under 2 million shares between the two exchanges. .....after NFG stock sold off dramatically after the bogus concerns over the assay results, the Short position covered 500,000 shares in about 2 to 3 or 4 weeks, as I recall, all in December, during tax loss selling season. By, May of the following year, the Short position was down to just under one million shares between both exchanges.
I'm thinking more along the lines that the Short position has been here because the SHorting of Canadian resource exploration stocks has become a profitable niche business, with the ludicrous allowing by regulators of naked shorting, and the abandonment of the uptick rule for selling shares short. I'm thinking this gave Lil Shorty a case of over confidence in his ability to cover the Short position in NFG , essentially at will, given the need to raise capital on a regular basis by NFG.
I'm thinking Lil Shorty is now concerned due to the huge strength in gold, and the likelihood that NFG will be discovering more gold at deeper levels, as is what is to be expected in orogenic gold systems, where gold grades usually are higher the deeper you go.
In the short term, due to the lag time in reporting, we may still see higher levels of shares held short, as Lil Shorty may well have needed to sell more shares short, trying to hold down NFGs price rise on the heels of strong gold action.
We'll just have to see later on as reports come in if, in fact, Lil Shorty IS covering.
IF and once the Short position HAS covered, expect that rallies will be sticky, and an ongoing uptrend in NFGs price will be much easier to gain traction, as further progress is made by NFG.
I think Nozzpacks post about significantly increased valuations of NFG will occur IF and WHEN NFG starts open pit mining of the shallow gold deposits they have already discovered on North Queensway, is correct.
Maybe Big Gold potential suitors DO NOT WANT NFG to begin mining....I say 'SO WHAT!'.....the sooner we get cash flow coming in., the better. I do NOT see any downside from begining to mine QW.
I say proceed as if NFG IS going to remain independent, as remaining independent is, by far, the best plan for NFG to maximize the value of Queensway over many many years ahead when it is likely QW will be being mined, as all the experts believe will be the case for QW.
NFG is simply in the Catbird Seat. Time is on NFGs Side. Stay INDEPENDRNT, develop QW into mine (s), and continue to explore QW. If QW IS a corolary to the Fosterville mine, and may well be much bigger, the profit to NFG by remaining independent will likely be MANY multiples of what value you would get by selling out to BIG Gold in the next couple of years.
Don't SELL OUT to BIG GOLD - BECOME BIG Gold!