GBN.V vs. $USB Monthly

In the monthly chart for $USB overlaid on the GBN.V chart, you get the sense of just why the stock has chronically underperformed. The trade for the last 20 years has been to sell the miner, and buy the long bond.

The keys to the nuclear option are in the hand of the miner, however should they pay out dividends from their net and comprehensive earnings. For Q2, it should have been 0.8¢ a share. This is something commercial banking could never anticipate.

Lopsided risk continues to build in the jitney-traded stock that is GBN.V. But I don't think that obtaining a re-rating of the listing will do anything. Especially since S&P downgraded the stock.

Netolitzky and cronies have painted themselves directly into a corner and are subject to a hostile bid, no matter how much they engage in gimmicky financings with Sprott. FWIW, Luxor has basically failed in its bid to acquire the lion's share of Crocodile with a deeply undervalued bid.

Still waiting at this point to see a turn in the long dated treasury bond, where profits have been virtually risk-free and miners get salt rubbed in the wounds. In some sense delaying the financials make sense, perhaps until options expiry.

The put options on the long dated treasury bond contract in the futures market for March expiry is something to be surveyed. There are some very big bets lining up on both sides of the trade. GBN.V will move as a stock only when this market comes off. But GBN.V would rather engage in utterly futile expediencies that have no value in this intermarket condition.

That is, unless they pay dividends.

supersize: http://www.flickr.com/photos/11747277@N07/6802542185/sizes/l/in/photostream/

stockcharts.com

-F6