June 12th, 2025 | 07:10 CEST
Short squeeze, hedge funds, and summer rally: Plug Power, Novo Nordisk, Power Metallic Mines
Is Power Metallic Mines poised for a summer rally? There are certainly good reasons to believe so: Following the discovery of its world-class multi-metal project, the stock has consolidated healthily. At the same time, further positive drilling results were reported, followed by a massive expansion of the area this week. Now, an extensive new drilling program is getting underway. Plug Power has shown in recent days how quickly a stock can rise by 50%. The insolvency candidate has delivered several pieces of positive news, and a short squeeze could drive the stock further. At Novo Nordisk, investors are realizing that the sell-off in recent months may have been too severe. The stock is working on a new upward trend. A hedge fund and a partnership in the AI sector are providing tailwinds.
time to read: 3 minutes
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Author:
Fabian Lorenz
ISIN:
PLUG POWER INC. DL-_01 | US72919P2020 , NOVO NORDISK A/S | DK0062498333 , POWER METALLIC MINES INC. | CA73929R1055
Table of contents:
"[...] We have a clear strategy for neutralizing sovereign risk in Papua New Guinea. [...]" Matthew Salthouse, CEO, Kainantu Resources
Author
Fabian Lorenz
For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.
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Power Metallic Mines: News flow pushing it to a new all-time high?
One of the top commodity stories of the year is currently gearing up for its next price jump: Power Metallic Mines (formerly Power Nickel) shot onto the global investor radar at the turn of the year with spectacular drilling results. The stock tripled in value within a few months. Since then, a healthy consolidation has been underway, which should soon come to an end thanks to positive news flow. If the share price reaches its February highs – and there are many reasons to believe it will – this would already mean a 50% gain for new investors.
There are good reasons for a bullish price trend: First, Power Metallic Mines again published positive drill results in May with high-grade gold, silver, and copper mineralization. This confirms that the Canadian Nisk-Lion-Tiger area is a world-class multi-metal project. The next piece of top news came this week. The Company has announced the 100% acquisition of 313 mineral concessions covering a total area of 167 km². The area borders the 45.86 km² Nisk property. With this, the Canadian company has more than tripled its land holdings. Power Metallic sees significant potential in the larger basin, which indicates similar conditions to those found at Nisk-Lion-Tiger.
Power Metallic also pointed to its extensive and fully funded new drilling program. An additional 100,000 meters are to be drilled by 2026. Exploration will continue along the Nisk-Lion-Tiger trend and integrate the latest properties. Preparations are underway, and a more detailed summer exploration plan will be released in the coming weeks.
https://youtu.be/t9XqrIzU6Fo?si=QH12HZLljHpfLH4d
Plug Power: Short squeeze on the way?
While investors can speculate on a summer rally for Power Metallic, the train has already left the station for Plug Power. This week, the former hydrogen high-flyer's stock rose by almost 50%. Several news pieces relieved battered shareholders: insider purchases, an order, and tax credits.
Yesterday, speculation circulated that tax credits for hydrogen production in the US might remain in place after all. According to various media reports, Republican Senator John Cornyn had hinted at such a potential rescue of the policy. This is likely to be very important for Plug Power.
In the days leading up to this, Plug Power announced its participation in a billion-dollar project in Uzbekistan. The US company will supply a 2-gigawatt electrolysis plant to Allied Green Ammonia (AGA). The plant will be the centerpiece of a planned production facility for green chemicals. The entire project is worth USD 5.5 billion. The plant will produce sustainable aviation fuel, green urea, and green diesel.
In addition, an insider purchase has raised new hopes that the hydrogen specialist will get its problems under control. Chief Financial Officer Paul Middleton bought shares worth around USD 672,000 on June 9, increasing his stake in Plug by almost 30%.
Due to this positive mix, there are now indications of a possible short squeeze. After all, just last week, there was still speculation about insolvency and a delisting from the NASDAQ.
Novo Nordisk: Hedge fund steps in and makes demands
Novo Nordisk shares are also performing very well this week, continuing their upward trend. Investors are realizing that the sell-off in recent months may have been overly aggressive.
Parvus Asset Management intends to take advantage of the surprise announcement in May that long-time CEO Lars Fruergaard Jørgensen is stepping down and is applying pressure. As reported by the Financial Times, the activist hedge fund is not only building up a stake but also wants to have a say in the appointment of a new CEO and thus influence the Company's strategic direction. Ryanair and UniCredit could serve as blueprints for Parvus' approach. The hedge fund had also built up a stake in both companies and pushed through changes in management and strategic direction.
Yesterday, there was also some operational news. Novo Nordisk and biotech company Deep Apple Therapeutics announced a collaboration. Together, they aim to develop and market drugs for cardiometabolic diseases such as obesity. The partnership is valued at up to USD 812 million. Deep Apple uses artificial intelligence to develop drug candidates. Its proprietary AI platform is designed to shorten development time. With the agreement, Novo Nordisk has secured exclusive global rights to develop and commercialize so-called non-incretin-based oral therapies. This is intended to strengthen the Danish group's position in the billion-dollar market for next-generation weight loss drugs.
Plug Power shares should rebound soon. After all, the latest news has been positive, and with the start of the extensive drilling program, investors can look forward to a news-filled second half of the year. Novo Nordisk shares appear to be leaving the excessive sell-off behind them. Plug Power remains a surprise package. After recent rumors of insolvency, there could now be a short squeeze.
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