via Businessdictionary.com - Dividend Capitalization

How will GBN.H make a stick save to keep investors holding on to the stock, especially after missing the opportunity offered by the decline of the $CAD and the rally in $CAD Gold and Canadian gold producers? How will they compensate for the opportunity cost of totally ignoring market conditions in favour of pro-forma loophole formulae and instead stuffing their jeans with as much gold as their pockets could carry?

The irony is they're sitting on a gold mine, and they prefer to 'bet on a mania' by looking for capital gains through bullion price appreciation rather than the stock which is closely held.

They might offer a 1% royalty to large holders and insiders for a certain amount of capital. They hold large numbers of stock, therefore they would benefit by receiving a dividend plus royalty, which could tip the balance.

So what exactly IS dividend capitalization?

http://www.businessdictionary.com/definition/dividend-capitalization-model.html

http://www.tutorsonnet.com/gordons-dividend-capitalization-model-homwork-help.php

https://en.m.wikipedia.org/wiki/Dividend_recapitalization

-F6