What The Crash Did And Didn't Do

In the latest equity rout, the share price has suffered. As in any crash, equity prices are bound to decline. A close watch on the stock would say that yes, there were a minority of sellers, but for the most part it was a status quo price arbitrage at the hands of the sell-side brokers.

This is very probably the strongest object-lesson for the GBN.V management on the effects of aggressive dilution of the shares. Moreover its probably the best indicator that the path of least resistance in offering a return to the shareholders would be through paying a dividend.

IF the arbitrageurs have control of the stock price through first selling millions upon millions of share they first do not own, and equity swap holders can act like bond holders with voting rights making demands that just would not be legal in the context of a market, then what exactly is the point of investing if the share price never advances in 20years? The only thing they CAN'T prevent is paying out a return through dividends.

Another red flag here is that most of the technicals which appeared a lay-up for a price rally have been blown out. Not only that but very serious technical damage has been done to the elliot wave formation. (the month is not yet over - its going to be an agonizing wait)

Blame the stock market, but with the volatility going higher, and short term interest rates going lower, and the gold price melt up burning through the banksters' concrete ceiling, this stock should be powering higher. Unless of course, what we're seeing is mostly straightforward naked shorting with absolutely no other encumbrances.

I'll have to admit that I'm wrong that the share price would advance under these conditions, as it obviously hasn't.

There's been no panic, its just naked shorting status quo.

-F6