My Strong Hunch about Yesterday' HUGE VOlume...I wrote this originally over on CEO....
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@DanWarren1 My strong hunch is that this 'Iceberg Tesearch' report was used as a FRONT to republish the Hit Pieces that the small investment outfit in England has created a number of times previously......I'll cal them 'Crusty Investments'. Why?....because putting out another of their Hit Piece, so called investment reports under their name would just be shrugged off. So, the effect was huge for yesterday. This may have been the Short Positions strategy of how to cover their short position. Between the two exchanges, the volume was huge, probably the biggest in history or close to it.
Thus, the Short position may well have started covering the greatly increases short position recently accumulated on the AMEX....It is possible that the Short position has decided it is time to exit NFG/NFGC, as they see gold breaking to new highs, and gold stocks beginning to perform much better....and, of course, the timing of this right after the FED begins what is likely a long term trend of lowering interest rates, which very well may keep propelling gold, and gold stocks upward.
Evidence for this possible strategy is that there was huge orders on the Bids yesterday, eagerly soaking up the HUGE selling....the telltale sign of buyers who were VERY CONFIDENT....they likely knew there was going to be a HIT PIECE put out on NFG, and were waiting in the wings to pounce on the selling wave."
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Also, perfect timing to hide the statistics on the Short position in NFG/NFGC. Yesterday's effect on the size of the Short position ( its been very minor for as long as I've been following it) won't become known easily in public info until a week or so into October.
I strongly suspect this was a Short Attack tactic to shake loose lots of shares for the Shorts to cover.....it worked very well.
I also doubt Bucco and Evenkeel, the likely paid bashers who inhabit this and the CEO board 24/7, knew anything about this tactic coming. No need to inform the hired help what was about to happen.
This whole Attack tactic reminds me of the ' ASSAY ISSUE' from a couple of years ago, which I sensed had been the Short Position contacting Canadian regulators and complaining about how NFGs assay information had been presented. That created an issue with the regukators, and sent the stock reeling, and NFG Was forced to redo a lot of assays, and it took many weeks to accomplish this. In the end, there never had been a problem with NFG's assays, as the redone assays confirmed that NFG's original assays had been fine.
This Hit Piece 'Iceberg' report even referred to assay problems......but, that's yet another TELL that this is just a Hit Piece. That phony issue was likely generated by the Short position a couple years ago, and proved to be a false issue.
The Short Attack campaign against NFG, has been ongoing for a couple of years, and all the while NFG has continued to make remarkable progress with high grade drill results.
Now, NFG, one of the up and coming gold exploration companies, is Way Behind the recent gains made by the Junior Gold stock index , GDXJ. And this particular Short Attack Tactic , though only knocking down the stock price by about 25 cents CAD, shook out a LOT of shares. ....Given the amount of shares that changed hands yesterday, such volume would have been expected to create a significantly lower share price. However, the I obvious motivated buying evidenced by the huge bids yesterday, were gobbling up all they could, as fast as they could....thus the limited price damage.
NFG has been under a concerted, but small volume, Short Attack for a couple of years or Somewhat longer.
They have had an effect to be sure. This seems to be yet another chapter in this ongoing saga.