Rick Rule - *blech* It's A Bad Market

GBN.V's way out of the woods is to pay dividends, perhaps in the range of 10% of revenue payout.(3¢ a share) I believe the company is in a position to do so, and that the final results of fiscal 2012 will probably bear this out. Financial statements that were reported are unaudited.

Taking this initiative will change the assumptions of the Black Scholes options pricing model that calculates share price changes at any given moment and ultimately determines share price. A change in long dated U.S. treasury prices can also drive a rally in GBN.V shares.

Paying a dividend will require a share price calculation based on forward earnings, rather than trailing earnings as they are now. This would also trigger the outstanding warrants and options.

Once buying dries up at these levels, this places commercial traders at a major disadvantage, since they cannot parry incoming GBN.V share monies into long dated U.S. treasury futures. When money flows into the stock for the short term, the share price declines.

http://www.safehaven.com/article/25570/avoiding-the-ugly-in-the-junior-resource-sector

-F6