Why Pay Dividends?

Because the people investing in your company are very highly likely to expect that this will be the result of their longterm investment, not just investing based on the expectation of short term gaming of the stock market.

Another suggestion as to why:

"Prime Minister Viktor Orban’s administration gave citizens an ultimatum on Nov. 24 to move their pension savings from private funds or lose their public pensions."

"Raiffeisen Centrobank AG analysts wrote in a report today that Moody’s Investors Service is “highly likely” to downgrade Hungary this month because of the government’s plan to “nationalize” the pension-fund assets."

Bloomberg.com

Provincial Bonds Decline Most in Two Years on Rate Outlook: Canada Credit

Bloomberg.com

"Over Promising And Underdelivering"

Some mining executives have used the cover available to at least partially concoct smoke and mirrors in and around wimpy behaviour and half baked decisions. No doubt, innocence is pervasive, yet a powerful trendline has developed under the blaring banner of "over promising and under delivering".

Mineweb

Percentage Of Official Sector Gold Holdings Has Not Risen Since 1911

"Still, Western investors fearing what Asia's rise could do to their own standard of living might also consider getting the jump on China's rapid accumulation of privately-held gold. For as long as gold is used to store value, rather than directly for buying and selling, then seeking out the most efficient, most secure route to owning it, and converting your gold into widely-accepted currency as you need, looks the next best thing to enjoying gold-backed currency – your own private Gold Standard in a world of central bankers hell-bent on devaluing your savings."

Adrian Ash Says More Likely That Gold Will Quadruple Rather Than Dismantle Gov't Debt

GBN.V Monthly

Now that GBN.V management has decided that the equity swap holders are more important than the shareholders and continues to withhold material information as long as is technically possible under the law, we are witnessing the action of the collapse of the overwhelming naked short interest in the stock. The company can table just about any results without any appreciable rise in the stock price. But the market fundamentals have curtailed any plan to quickly dispatch the shareholder value with the decline of the discount rate and the rise of the gold price.

The equity swap holders are on the hook, and the sell side brokers who have sold millions of shares into the market without first owning any shares whatsoever are going to have to cover their position. This will result in net buying. Should a buyer of scale come into the market, this will upset the apple cart. Sell side brokers and equity swap holders will lose their shirts.

Very possibly the stock will reach 55¢ by the end of the month and may very well challenge the highs set in 2006 - 2007.

supersize: http://www.flickr.com/photos/11747277@N07/5214512643/sizes/l/in/photostream/

stockcharts.com

Conclusion: The best place to find gold is in a gold mine rather than on the COMEX. And, secondly, solely because this will really bug the pants off some people, Netolitzky must resign.

-F6