Gediminas Jasionis
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Yukon-Nevada Gold Corp. (TSE:YNG) (PINK:YNGFF) Stock Faces Breakdown

by Gediminas Jasionis Jan 18, 2011
YNG_chart.pngYukon-Nevada Gold Corp. (TSE:YNG) (PINK:YNGFF) stock approached an important support level at 65 cents and is looking to break further down as far as the momentum goes.

Little attempt to breach the support has been made yet, but the trading volume has picked up in the recent few sessions, showing slight signs of panic selling. The price has gone flat for the time being, which is a sing of indecision. 70 cents now provide a considerable resistance, so a breakout should be made soon as the channel for fluctuation is very narrow right now.

Fundamentally the company doesn't look very healthy, with the only exception being the rate of revenue growth:

• Revenues have been growing on average 59% per quarter for the past year;
• Most of YNG's value lies in properties, not liquid assets;
• Large losses are burning cash fast;
• Gross profit margins remain very low;
• Means of recent financings pose a threat of dilution to current shareholders.

YNG_logo.jpgYukon is running gold projects, which hold potential yet to be realized, yet there were no updates on operations since late November.

Without news in effect the price clearly cannot hold at inflated levels, as proven by the downtrend that started forming shortly after the last update. Market cap is still more than 4 times the net tangible worth of Yukon's business, thus there is plenty of space for share price depreciation.

Comments (3)

1. matt
February 10, 2011, 02:27PM

Quotes i think anyone should invest in gold, it's a safe risk because the market will be up and down but gold value is usually consistant.. as for yukon-nevada gold corp, i disagree with your perspective.. i think there's a lot of potentional for this company to grow into an $8-10 stock price. there has been an update on the company on january 11-12, 2011. They gave a presentation on the companys status, growth, and future. Yea, this is a "penny" stock at the moment but this company was on the brink of bankrupcy in 2007 when they hired all new management team 2009-2011, now they have increase share price from $0.12/share to $0.68. A lot f their equipment has been brought up to enviormental standards and moving in the right direction to produce considerable amounts of gold per year. Of course this won't happen over night but I think by end of 2011, they'll close their stock price at $1 or pretty close to.

2. JC
January 20, 2011, 01:02PM

Quotes It is only my opinion that the downward flow of gold and juniors will stop. It appears to me that the stock markets have reached their maximum. No one wants to buy stock at these high prices, therefore the stock markets stall, then gather no moss on their way down a couple of thousand points. Hold on to gold?

3. najpa
January 19, 2011, 06:53AM

Quotes this is the place for the latest update.


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