Charts & Comments
posted on
May 24, 2013 12:18PM
Saskatchewan's SECRET Gold Mining Development.
GBN.V Daily
The GBN.V daily chart with a horizontal volume indicator will show you just about where shareholders purchased their shares. For the most part, shareholders are sitting on a 90% loss or greater, even if you managed to average down. Money flow 'out' of the stock has been pervasive since 2007.
The facts as they stand grossly mis-characterize the La Ronge Gold Project, where historical information, including previously published technical reports do not reflect the outcome at present. The strong discrepancy between known historical facts and the facts as they are presented can only have been arrived at through conscious effort.
You would have to have stockpiled ore immensely and then just let it sit there indefinitely, without processing it. You would have counted the stockpiled ore as depletion, affecting the earnings profile in depreciating earnings. You would also have had to keep secrets withholding information from the shareholders, such as drill results, reserves, ore grades. You would have spent millions on development that went unannounced. You would have had to process below-cut-off grade material, rather than the stockpiled ore-grade material. Rather than prevent anyone from obtaining knowledge about the project, you wave a huge red flag saying you have something to hide.
On the sell-side, brokers must be scratching their heads at all of this, shrug their shoulders, and continue shorting, until they can short no more.
Preferred Shares
A major expansion without diluting the float could come through issuing preferred shares. They are normally offerred at $25, fixed at par value, and carry a yield, but no voting rights. At the appointed time, the company can force a buy-back.
http://en.wikipedia.org/wiki/Preferred_stock#Other_features_or_rights
http://www.youtube.com/playlist?list=PL1663D5FD2A85E21B
$USB Monthly
Waiting for bond markets to move has been like waiting for the onset of spring this year.
Sell-side brokers who are involved in the trade of selling the miner and buying treasuries futures must be looking on in horror, as their risk free trade continues to deteriorate, meaning once treasuries sell off, they are obliged to buy back the shares in the miner that they sold without owing them.
$Gold Weekly
Its' looking more likely that bullion prices are setting up a plain-vanilla continuation pattern. Could gold prices plunge again? Its possible. The monthly close will be important.
-F6