October 3, 2010
The BMR Portfolio
Gold Bullion Development (GBB, TSX-V)
Gold Bullion is on the rebound and starting to look stronger technically after falling as low as 53 cents in the last half of September…the stock has successfully bounced off its rising 100-day moving average and will likely test its declining 20-day moving average at 60 cents this coming week…GBB continues to consolidate within a 4-month channel, currently trading at the lower end of that channel…a reversal in the 20-day SMA appears to be on the horizon sometime during the first half of this month and that would signal another potential significant move to the upside…this could coincide with the closing of the company’s $6 million financing at 54 cents…rumor has it the financing is fully spoken for and could be oversubscribed…we anticipate more drill results sometime this month and an announcement regarding the launching of a Phase 3 drill program that should be even larger than the Phase 2 program which was expanded to 25,000 metres and is nearing completion…the addition of 1 or 2 more drill rigs, preferably RC, would be a welcome development…the LONG Bars Zone is all about volume so the quicker and more that Gold Bullion drills, the better…
