Chart & Comment
posted on
Oct 05, 2012 04:06PM
Saskatchewan's SECRET Gold Mining Development.
$USB Weekly
However you might look at it, financial results that are contrived to encumber a profitable company into a loss, both at the end of the fiscal year, and into the first quarter are primarly intended to destroy confidence.
You can say without reservation that the bottom has been thoroughly tested.
Individual retail investors have stepped up to the plate and provided the necessary capital when nobody else would, and arrived at their goals of seeing the company put into production on a valuable and extensive gold mining property.
Something has been standing in the way the whole while, though difficult to pinpoint, that destroys confidence at exactly the time when that investment capital should be re-affirmed in its correct deployment and positioning in the markets with profitability and a higher share price.
In fact, you would say that the company is being positioned for a cheap buyout. I wouldn't be surprised if that was the case. As with the recent B2Gold buyout, (they massively diluted their own shareholders in lieu of actually offering cash) you will probably see an offer for shares instead of cash, because people behind the deal think that you'll be willing to take anything at this point.
Gold price rises and drill core results haven't moved the share price, but a rout in long dated treasuries will, as GBN.V share prices are strongly inversely correlated.
Right now, nothing will move until the results are known of one of the most dreary U.S. elections in history is concluded on Oct. 12.
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-F6