Is nak a good share to buy now
11/7/2024 02:16am
**Northern Dynasty Minerals (NAK) is not a good share to buy at this moment.** Here's why:
1. **Technical Indicators Suggest Caution**: The stock's price has crossed above its 50-day and 200-day moving averages, which could be seen as a bullish signal. However, the 200-day moving average is at $0.00, and the stock has traded as high as $0.42, with a recent closing price at $0.39. This suggests that the stock has potential for upside, but the lack of positive earnings estimates and the negative P/E ratios (PE = -9.85 and PE = -16.67) indicate significant risks.
2. **Analyst Ratings and Price Targets**: Despite the positive sentiment, analysts have set a target price of $0.80, which represents a significant upside from the current price. However, this does not necessarily mean the stock is a good buy now.
3. **Institutional Activity**: There have been some institutional investments, but these are countered by sales from other funds. Mirae Asset Global Investments Co. Ltd. and Herr Investment Group LLC have acquired new stakes, while Russell Investments Group Ltd. and GAM Holding AG have increased their positions. Cadinha & Co. LLC has also lifted its position.
4. **Financial Performance and Estimates**: The company reported a negative EPS of ($0.01) for the quarter and is expected to post -0.03 earnings per share for the current fiscal year. This indicates ongoing losses.
5. **Market Sentiment and Technical Analysis**: The stock has hit a 52-week high, which could be a bullish signal. However, the overall technical analysis suggests a strong buy only on short-term indicators, with concerns about the stock's performance against its moving averages and the lack of positive earnings estimates.
6. **Strategic Developments**: Northern Dynasty Minerals is involved in a legal battle with the EPA over the Pebble Partnership mining project, which could impact its operations and future earnings.
In conclusion, while there is some potential for the stock price to increase based on technical indicators and analyst ratings, the negative earnings estimates, the lack of positive financial metrics, and the ongoing legal challenges suggest that NAK is not a good share to buy at this moment. Investors should exercise caution and consider these factors before making a decision.