Although Greenbriar Capital Corp. (GRB:TSX.V; GEBRF:OTC) hasn't done much since we started following it, the outlook for it remains very favorable and its stock continues to look like it is readying to break out of a giant base pattern.
One important positive development for the company that has been moving forward is that its RealBlock blockchain technology looks like it is going to gain widespread use. The reason for this is that over the past couple of years there has been an explosion in cybercrime involving hackers breaking into email accounts, especially gmail, and intercepting the wire transfer instructions that have in the past been routinely sent between real estate companies and their clients via email for the purpose of expediting real estate transactions. The hackers intercept the wire transfer instructions and then reroute the wired funds into their own accounts. This problem is mushrooming and approaching crisis proportions and this is where Greenbriar's RealBlock blockchain system comes into play, as it is an encrypted safe transfer system that shuts the hackers out. There is a lot of interest in this system and potentially a lot of big customers that would lead to substantial earnings per share for Greenbriar, and that's without factoring in its Puerto Rican solar project and its innovative Smartglass technology, which are both believed to be moving forward.
Looking at Greenbriar's latest 10-year chart, we see that although it has continued to zigzag around in recent months within the confines of its giant base pattern, its technical condition has continued to improve, with a buildup in upside volume driving both of its volume indicators higher and higher. This is an obvious sign of ongoing accumulation, and clearly breakout can be expected to occur when all of the stock available around current levels has been soaked up—and here we should note that Greenbriar only has about 19 million shares in issue, and the majority of these shares are tightly held by insiders—so it is obvious that the upside potential of this stock is very big once it decides to get moving.
On its latest 6-month chart we see that after another sharp run-up on strong volume early in September, it is rather overbought and rounding over beneath resistance, so it could drop back again. While the positive volume pattern suggests that it could break higher from the current pattern, if it doesn't and instead drops back again, it will simply be regarded as presenting another opportunity to buy or build positions further.
The conclusion is that Greenbriar continues to look like it is readying for a major bull market advance, so we stay long and it is buy on any near-term dips, if any. The fact is that most investors have no idea how much this company is going to be worth and is already worth. Let's just briefly consider this. With respect to the company's Montalva solar project in Puerto Rico, following the devastation wrought to the island's infrastructure by Hurricane Maria, the Federal Oversight and Management Board has classified Greenbriar's solar project a "Critical Project" and recommended that the project get built, and a court ordered valuation found the net present value to Greenbriar to be US $191 million even if the project does not get built, which works out at $10 a share.
Then we have Greenbriar's RealBlock blockchain technology, which is commencing commercial operations in just a few days through its tradename RealBloq. With the real estate industry having no choice but to adopt this technology because of the increasingly ruinous consequences of ballooning wire transaction fraud, which was up from $17 million in 2016 to $969 million in 2017 based on FBI reports, this is set to be a multi-billion dollar industry, and Greenbriar is already there with the solution.
Finally, the company's land position in California, acquired at a very low price, is set to be developed which will yield a further $260 million to shareholders. So I'll stick to the charts, you do the math—don't worry, it's easy "back of a matchbox" stuff, and to get you started I'll remind you that Greenbriar only has 19 million shares in issue, most of which are tightly held.
Greenbriar Capital website.
Greenbriar Capital Corp., GRB.V, GEBRF on OTC, closed at C$1.39, $1.11 on 28th September 2018.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
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Charts provided by the author.
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.