Gediminas Jasionis
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Crazy Price Rally Burning Out - Gold Bullion Development Corporation (CVE:GBB)

by Gediminas Jasionis Apr 23, 2010
GBB_chart.pngGold Bullion Development Corporation (CVE:GBB) is up 1100% for the year and this Canadian stock's price rally appears to be approaching its limit.

Traders who have been in the stock from the start probably calculated a solid gain by now and those considering entering based on further appreciation prospects are scared to witness a major correction.

While the price added another 2.8% on Thursday, an attempt to reach a new high looks vague as the trading volume is tapering off. That is the only clear signal of possible rally expiration for now, but most often the fading volume is a strong indicator of upcomming price direction changes.

The news that triggered this rally was the announcement of drilling results, notably the best ones Gold Bullion could have hoped for from their Granada Gold Property. [BANNER]

According to the press release the company has extended their shallow depth mineralization zone when testing grounds which were never drilled before.

gold_bullion_dev_corp_logo.jpgApart from the apparent potential, the company is yet to make their first revenues. Finding gold on their properties opens up financing possibilities though - the company has secured $4 million funding 4 weeks ago. Gold Bullion's current cash position of $4.5 million allows to continue with the exploration efforts without raising short term concern for working capital. 

Comments (2)

1. money sux
June 24, 2010, 05:01PM

Quotes Glad I'm on the buy side of this stock; with potentially 2.5 to 5 million ounces in the ground, this stock is CHEAP: maybe the volume of trading is going down because this stock does not lend itself well to Day Trading (keeps going up), unless you have a strong stomach.

2. Michael N. Chidzero
May 29, 2010, 10:53AM

Quotes We would want to hear who the major trading partners are and then the numerous producing countries outside of Auction markets.

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