GBN.V Monthly P&F

The P&F charts for GBN.V are very hard to pin down, since the price has essentially gone nowhere since Bre-X.

Our weekly P&F generates a bearish price objective of 18¢, which has been met. If you want a longer term outlook on the stock price and how it might generate a P&F scale chart, you have to use a larger box size.

All of the charts that are generated using GBN.V's price history in any time scale such as daily, weekly, or monthly come up with wildly variable bearish price objectives. If you use a larger box, you get a larger time scale, but with equally bad results of wildly variable bearish price objectives which all seem completely out of the question.

GBN.V Monthly P&F with a larger box presents the longest price history, and in a precentage scale, presents the same bearish price objective as the weekly chart with no adjustments.

Suffice it to say that GBN.V is still in a bear market consolidation since 1997 (or has not yet managed a breakout) and has not participated in the mining stock run-up from 2002-2008, and was ignored in the commodities rebound of 2008-2011. The miners were generally favoured in the intial recovery of gold prices, while the metal was favoured after the financial crisis set in. (the exception to this rule was massive, open pit projects)

IF there's a subsequent downturn for equities, P/E ratios will decline and dividend payout ratios will increase. This will probably become a focal point for gold mining equities, if it hasn't already.

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-F6