I ran across a blog/forum with focus on PNP.
BLOG:
buy-high-sell-higher.com
FORUM:
buy-high-sell-higher.com
Here's a snippet from the blog (3/17):
Pinetree Capital Corp Speaking of Pinetree, we had an interesting discussion about Pinetree this week on the Forum. The discussion centered around Pinetree’s Net Asset Value, which is the sum of all of it’s investments. Most mutual funds, which is sort of what Pinetree is, trade at or below their NAV. Pinetree, at $22.27, is trading at more than double it’s NAV, which is probably in the range of $6 to $10 Canadian (they don’t publish a complete list of their holdings, so it’s impossible for me to calculate the NAV on a daily basis. They are due to release results soon, probably this week, which will contain their NAV up to the end of the last quarter). This begs the question: is Pinetree worth more than it’s NAV?
Obviously I believe that it is, or else I wouldn’t own it. I am willing to pay a premium to have Pinetree management evaluate companies and decide when to buy and sell. If you have $100,000 to invest, it’s not practical to try to take positions in 50 different companies. However, if you have $1,000,000 or more to invest, it may be possible to simply watch what Pinetree buys, and then purchase those stocks yourself (which is basically what I did with the four stocks mentioned above last week). By buying the stocks directly, you pay market value, but no premium.
The other reason for owning Pinetree is that if some big mutual fund company, or investor, decides they want to get into the uranium/base metals business, buying Pinetree would be an easy way to buy a portfolio of companies. That would certainly be worth a premium, particularly since Pinetree owns shares in companies that are not traded publicly.
Of course the other down-side to owning Pinetree is that the CEO is currently the subject of an Ontario Securities Commission Investigation, which can’t be good for a company. Also worrisome is that our old friend Mr. Dines is a big supporter of the company (I’m not giving away any secrets here; he has recommended Pinetree publicly many times). What happens on the day when Mr. Dines says to sell? The stock will drop like a stone. It therefore behooves us to take profits all the way up. |
