GBN.V P&F

The GBN.V point and figure chart presents a unique point of view, giving you an idea just how dire the share price decline is and how much further it can run, given the price trend.

Each new decline brought a new price target low, where the next bearish price target is sitting @18¢.

The latest financing should confirm for shareholders that the company has no intention of laying their cards on the table any time soon. They can continue to obfuscate with a "What You See Is What You Get" type presentation, not having to report the final numbers until the end of fiscal 2012 in April. The numbers reported now aught to see a major revision later, much as the grades and tonnages reported for April fiscal 2011 and Q1 fiscal 2012 were substantially changed, and how grades and tonnages are not a matter of great urgency to report at any time in any particular quarter as of yet.

The one salient detail that people overlook is that they are easily convinced that accounts payable is quite co-incidentally equal to almost all of the cash flow, when the actual cost for operations and development is not reported. The actual cost is perhaps 1/4 the revenue.

The latest financing serves only one purpose, that GBN.V preserves its control over the project in the event of a hostile offer. A buyer of the project will have to purchase 50+% of the shares at market first before they can make any substantial changes to the agreement with Sprott.

Sprott themselves are not buying more shares because they have insider information on what some of the unkowns consist of. So Sprott and GBN.V work together to see that development continues without the intervention of an outside party.

This can continue indefinitely unless the share price decilnes futher. Then an outside buyer has a major opportunity to relieve the GBN.V management of the ownership of the project in short order.

What is very unusual this time is that the quarterly report comes out so hastily. They would never act this way under normal circumstances. They would wait until long after this information becomes obsolete and is overdue before releasing it. They would have had a legitimate inquiry or request from an outside buyer with an unacceptable offer. The financing was their answer.

imo, GBN.V is going to have to pull a rabbit out of a hat to get the share price up, or get taken out should the share price decline according to the P&F chart.

stockcharts.com

Bond Markets

Despite the bearish tone of the long bond market, things are on hold until The Fed completes its open market operations today. The strike price of 140, should it hold for options expiry Dec. 18, will make for an interesting cascade of sell orders into the new year.

The best scenario that can be hoped for is a bear market in the long treasury, and a wave of short term cash demand into the repo market, keeping short term rates at zero or negative.

A decline in the long bond price would help the equity side, while low or negative rates in the discount rate will strongly support gold prices.

http://www.newyorkfed.org/markets/tot_operation_schedule.html

http://www.safehaven.com/article/23481/tlt-likely-double-top

Nasdaq Report

"Gold explorer Golden Band Resources (GBN.V) rose 5 percent after it swung to profit in second quarter, reporting income from operations of C$4.51 million compared with a loss of C$1.29 million for same quarter in the previous year."

Nasdaq

The market considers that GBN.V is merely a gold explorer even as they report a profitable quarter of production and has been producing gold steadily since last February. This might sound incorrect or odd, but the company still has to come clean over its work in and around the Dickens Lake Prospect, but also report on findings in Waddy Lake, and how Golden Heart can expand to include RKN. Thus, they are a gold explorer in a sense, even though they are in production.

The obvious point being is that the company is handicapped with a huge developmental deficit for which they present no outlook and depend on obsolete information to keep this from view. Investors, therefore, cannot make a decision on how to evaluate the company and the share price remains low.

Its a case the glass half empty or half full, where some might call that lots of room for growth.

BNN.CA

More videos than you can shake a stick at:

Frank Mersch, Front Street Capital

A good interview to find out what a hedge fund manager would think.

http://watch.bnn.ca/#clip577952

http://watch.bnn.ca/#clip577953

http://watch.bnn.ca/#clip577954

David Rosenberg, Glusken Scheff

A very good interview on what an economist might think.

http://watch.bnn.ca/#clip577279

http://watch.bnn.ca/#clip577280

http://watch.bnn.ca/#clip577281

Bill Harris, Avenue Capital, Nov. 22

This might seem overly-lengthy, but take time during the weekend to watch this series, you get an idea of what investors are looking for in resource companies.

http://watch.bnn.ca/friday#clip572923

http://watch.bnn.ca/friday#clip572924

http://watch.bnn.ca/friday#clip572928

http://watch.bnn.ca/friday#clip572940

http://watch.bnn.ca/friday#clip572947

http://watch.bnn.ca/friday#clip572950

http://watch.bnn.ca/friday#clip572954

http://watch.bnn.ca/friday#clip572959

Conclusion: All of them are talking dividends. GBN.V is truly employing absolutely the wrong strategy.

Insider Losses

Insiders, given their percentage holdings in GBN.V, would have lost approximately ~$25m. in the stock price decline from 75¢ to 25¢ and stand to lose more should the price decline further. They also stand to lose a lifetime's work accumulating and consolidating properties in the La Ronge gold belt.

Compare these risks and losses with what one trader lost during the Lehman collapse and his reaction:

Business Insider

Confusing Trading Pattern

One thing algorithmic trading and the use of retail accounts unknown to the financial institutions that might provide them has done, is to make trading in any penny stock very suspect at any given time. Its only when there is a complete lack of buyers that the sellers are in control, you have to keep this in mind.

But there was, at one time a term for co-ordinating trades to control the share price, especially at the close. It was called; The Jitney Trade

http://www.investopedia.com/terms/j/jitney.asp#axzz1ey7KNP8X

-F6