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Arn

Pinetree Capital (PNP)

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GEI,

 

I am now in a position to invest into Canadian Stocks. Account open and moderately funded (currently earning around 4%). I have started to look at the opportunities. I had received PP offers in the past and looked at their performance up to now. None would have put me in the money at current prices (you may remember I had asked elsewhere how to value the warrants to add their value into the calculations). I have also not a huge amount of time for research in relation to the small pot. However I remain convinced of the merits of investing into junior miners, oil explorers etc. Conrad Vasserman indirectly pointed me to Pinetree Capital (http://www.pinetreecapital.com/default.asp) via a post on an individual miner. So I had a look at them.

 

Why I like them

Invest across a range of juniors in the following sectors (companies)

Uranium (35)

Oil & Gas (10)

Precious Metals (54)

Base Metals (17)

Molybdenum (10)

Energy Related Technology (4)

Biotech (6)

Other Tech (11)

 

The figures

Pinetree Capital

Fair Value 810,000,000

Liabilities 315,200,000

NET Asset Value 494,800,000

Diluted Shares 108,181,396

Gross Asset Value 7.49

NAV 4.57

Current Share Price 6.85

Gross Discount/Premium -9.3%

Net Discount/Premium 33.2%

Warrant Price 1.55

 

Note (Fair Value end of August) & Share Price 05/11/2007.

 

So far so good Pinetree is like an Investment Fund.

 

However their angle is to help the company grow their share price with management, Board and development strategy.

 

Pinetrees text

“Pinetree is a diversified investment, financial advisory and merchant banking firm focused on the small cap market. Pinetree's investments are primarily in the resources sector: Oil & Gas, Uranium, Precious Metals and Base Metals.

 

Pinetree's investment approach is to build a macro position in a sector, find the micro-cap opportunities in that sector and work with those companies to build them to commercial production and create an exit.

Pinetree Capital is listed on the Toronto Stock Exchange under the symbol PNP.”

 

“We are diversified investors of our own capital. We are constantly looking two to three years into the future so that we enter (and exit) sectors ahead of the curve. We successfully did so to catch the upswing in gold prices in late 2003 and the move in uranium prices that began in late 2004.”

 

Perhaps not as exiting as investing directly in a much smaller number of miners and trading in and out however I have not built up this experience yet nor have a great amount of time to research and above all track. I am spending my time on my paid work, deals and business ventures.

 

Q1 - However what would you think of for this stock as a buy and hold for a new entrant into this sector who is short on time and experience but keen to grow their exposue and experience?

 

Stockhouse lists

http://www.stockhouse.com/comp_info.asp?sy...&table=LIST

 

Similar Companies:

Northern Financial Corporation Benvest Capital Inc. B.C. Pacific Capital Corporation Coventree Inc. Clairvest Group Inc. Canaccord Capital Inc.

 

Q2? Would you go for one of these instead?

 

Thanks,

Arn

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I have recently been in-and-out for a quick 20%

 

Management has shown a tendency to be overly-aggressively plunging into Uranium with both feet.

 

So expect a volatile ride with these

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Their stock price performance has been poor this year.

 

Perhaps we can cherry pick some good ideas from their investee list:

http://www.pinetreecapital.com/investees_sector.asp

 

Good plan.

PNP had to downsize to repay margin debt, and their investee companies go enormously hammered.

 

I bought LAM at $4.50 when they were selling.

 

PNO recently raise capital (near $5.25) and so they are less likely to get hit be forced selling.

But if it comes again on this drop, they may foster some bargains again

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I put the Investee list into excel to see if I can shadow the NAV price v their actual share price (factoring in stock announcements they make) in order to time the purchase.

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I put the Investee list into excel to see if I can shadow the NAV price v their actual share price (factoring in stock announcements they make) in order to time the purchase.

 

watch the chart too: daily chart

 

I reckon it could break below immediate support near $6.00, and if it does be careful

 

Strong support is down at $4- see weekly chart

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...could break below immediate support near $6.00, and if it does be careful

Strong support is down at $4-

 

Now trading at $5.31

I wouldnt buy it here. If it is going to hold $5.00, it deserves a bit more time to form a bottom.

Else I still think it may see $4.00

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DrBubb I will keep an eye on the price. Many thanks.

I signed up for their email alerts to keep up to date on their activity.

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Price now 3.58

Ace or Dr Bubb good to step in?

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Price now 3.58

Ace or Dr Bubb good to step in?

I too would appreciate some comments here.

 

PNP, DML, MGA all look good for a punt. They are re-testing and/or slightly breaking the Aug-07 lows. Unfortunately the “recession” sentiment hasn’t hit bottom yet and further market convulsions may mean they could go even lower. For the uranium sector that low could be very low indeed. Am tempted to go for a quick in/out trade.

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Price now 3.58

Ace or Dr Bubb good to step in?

 

Unlike Bubb, I'm a fundamentals kind of a guy and can't give much guidance on timing.

 

I don't buy funds, specifically because I believe their value is the sum of the parts and it makes more sense to me to just own the best of the best rather than a gazillion different companies. I prefer to create my own much-smaller fund of well-researched companies that I am comfortable with. I am a little concerned with Pinetree's heavy uranium exposure and poor performance in 07 (when even a non-professional like myself was able to scratch out a 20% gain after a spanking in Nov/Dec.)

 

If you are interested in the uranium exposure along with gold, you might want to consider Fronteer Group (FRG). These guys are hitting almost 1 oz/ton gold at the surface in Nevada of all places and still the share price is going down with the rest of the market. Half of their market cap is in Aurora Energy (uranium) stock. I'm not long this one, yet, but likely will be in the near future if I can come to terms with the heavy uranium exposure.

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KY I saw that you use DCF to look at companies.

Are you a buy and holder investor?

 

I like Pinetree because of its spread as a beginner in this sector but see the large % in any sector a drawback. Do you know of anything similar?

 

Thanks - Arn

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KY I saw that you use DCF to look at companies.

 

Yes, I use DCF to evaluate companies. But I also use it to evaluate engineering/construction projects for clients and for things as simple as deciding whether or not to install a geothermal system in my home. Companies (especially in the mining sector) use DCF to evaluate takeover targets. I have had three stocks bought out by other companies in the past year (Rio Narcea, Tiberon Minerals, AUR Resources) with a nice profit on each. So DCF is a good way to identify the minimum value of a company (i.e. - when to buy.) Unfortunately, it is not very helpful in identifying when to sell.

 

Are you a buy and holder investor?

 

I am a buy-when-the-stock-is-cheap and sell-when-someone-will-pay-me-much-more-than-the-stock-is-worth type of investor.

Sometimes this takes a couple years. Sometimes only a few months. But I am not a trader, if that's what you are asking.

 

I like Pinetree because of its spread as a beginner in this sector but see the large % in any sector a drawback. Do you know of anything similar?

 

Thanks - Arn

 

There are various resource mutual funds available in the U.S. I will try to dig up some names. However, I do think that with your interest in the sector (otherwise you wouldn't be reading GEI, right?), you might want to attempt some fundamental research of individual companies. Resource/commodity companies that have achieved the feasibility stage are very easy to evaluate. Usually the only major unknown is future commodity price (use conservative assumptions and check sensitivities.)

 

Here is a Due Diligence checklist that I put together last year that gives a reasonable process (I think) for evaluating the fundamentals of a mining company:

http://www.investorvillage.com/smbd.asp?mb...amp;mid=2388964

 

Here are my holdings in a few sectors that I think are still selling for reasonable prices:

Gold: GORO.ob, YNG.to

Nickel: Ni.to, CML.v

cobalt: GMC.to

Zinc: SRZ.to, LMC

Take a look at these and their competitors and do comparisons. The BM/PM sector has taken a beating in the past couple of months so there should be some good values out there.

 

The best thing to do is to research as many companies as possible and compare statistics. As a rule of thumb, you should be rejecting at least 10 companies for every one that looks good.

 

If you are interested, email me at benlmurphy@hotmail.com and I will send you a DCF spreadsheet on one of the companies listed above. Want to start off with an easy one? I'd suggest Bubb's favorite: Royal Gold. It's a royalty company so the DCF analysis is extremely simple. Use a spreadsheet to find the net present value of the royalty streams to the end of their respective reserve lives, add working capital, and subtract debt to obtain Royal Gold's intrinsic value. Divide by # of shares to get intrinsic value per share. Then compare to market price. I like to buy with a 40-50% discount to intrinsic value (this is very difficult to find in a gold company with the futures in cotango.)

 

All of this takes time (as my wife will tell you) of course, but unfortunately I haven't yet found a way to make good money without investing a lot of time. It helps having boards such as GEI to point in the right direction of potentially good investments.

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Pinetree Capital Ltd. (PNP.TO) on Friday said it bought, on February 14, 2008, ownership of 1.5 million common shares of Gold Summit Corp. and 1.5 million common share purchase warrants. Each Warrant entitles the holder thereof to acquire one additional common share until February 14, 2010, at a price of C$0.25. In the event that the warrants are fully exercised, the holdings represent about 5.2% of the total issued and outstanding common shares of Gold Summit as of February 14, 2008. As a result of the deal, Pinetree and its joint actors held, as at February 14, 2008, an aggregate of 6.3 million common shares of Gold Summit and convertible securities exercisable into 4.3 million common shares of Gold Summit, including the Warrants. Of these totals, Pinetree directly holds 5.5 million common shares and rights to acquire 3.5 million common shares of Gold Summit upon exercise of convertible securities, including the Warrants. If Pinetree and its joint actors were to exercise all of the Convertible Securities, their combined ownership would represent a total of 10.6 million common shares of Gold Summit, or about 17.5% of such shares outstanding as of February 14, 2008.

 

Gold Summit is TSX-V: GSM http://www.goldsummitcorp.com/

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Pinetree Capital Ltd. Announces $40 Million Private Placement

 

http://www.earthtimes.org/articles/show/pi...nt,441089.shtml

 

Anyone in here?

 

I am interested in this PP. The press release says that Canaccord Capital Corporation and Thomas Weisel Partners Canada Inc are the agents carrying out the PP. Does anyone know if that means I would need to open a brokerage account with either of these?

 

I will contact them anyway, but I've not been involved in a PP before so would appreciate any feedback from anyone with experience. From what I remember Bubb uses Cannacord and has had good experiences of them

 

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I am interested in this PP. The press release says that Canaccord Capital Corporation and Thomas Weisel Partners Canada Inc are the agents carrying out the PP. Does anyone know if that means I would need to open a brokerage account with either of these?

 

I will contact them anyway, but I've not been involved in a PP before so would appreciate any feedback from anyone with experience. From what I remember Bubb uses Cannacord and has had good experiences of them

 

I will contact my CC broker, and se if there is still time on this

 

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I will contact my CC broker, and se if there is still time on this

 

Pinetree acquires quite bit of shares in this group of companies

 

TNR Gold Corp

Solitario Resources

Latin America Minerals

 

All have done quite well last 1/2 year!

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I have done better then average, trading PNP, I also hold a large chunk in my long term acount.

One of the things I do like with PNP is the access to everything they are into.

I use this info to help me with some of my other Jr's I am collecting.

I look for ties in the management, investments etc from PNP.

 

PNP tends to play the long term hold on the majority of it's holding, so if you follow their holding and pick certain companies, you are more able to buy near the low and hold it for a few months and make a very decent profit.

 

pnpforme

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I hope people were a bit cautious with this one, as I suggested

 

Pinetree was hit be a meltdown in many Uranium shares yesterday : PNP.t-chart

 

Would I buy it?

Maybe. But not just yet. I think the drop may be more than a 1-day dip.

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I bought some today. I really like this company and welcome the opportunity to add more at a substantial discount.

 

I've reserved a large chunk of cash for a possible slip to the $2.25 area.

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Pinetree Capital Announces Renewal Of Normal Course Issuer Bid

 

August 19, 2011

 

TORONTO, Canada (August 19, 2011) Pinetree Capital Ltd. (TSX: PNP), a Canadian investment company, announces its intention to renew its normal course issuer bid (the "Bid") to purchase up to 5,000,000 of its common shares (representing approximately 3.7% of the 136,547,273 common shares outstanding as at August 15, 2011), through the facilities of the Toronto Stock Exchange (the "TSX") and on other published markets. The Bid is subject to acceptance by the TSX.

 

The Bid will commence on September 1, 2011 and end on August 31, 2012. Purchases of common shares under the Bid will be made at market prices and otherwise in accordance with the rules of the TSX. All common shares purchased under the Bid will be cancelled.

 

Pinetree believes that recent trading prices of its shares are not, and prices from time to time throughout the duration of the Bid may not be, fully reflective of the company's underlying value. Depending upon future price movements and other factors, the purchase of its shares under the Bid may represent an attractive investment for the company and a desirable use of funds to contribute to enhancing shareholder value.

 

Pinetree has not purchased any of its common shares during the previous twelve months.

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An Investment for all Seasons

Bob Moriarty
Archives

Oct 19, 2012

I just returned from a grueling 6-day trip to Perth Australia to see the Pilbara project of Novo Resources. I flew 50 hours in the air in 6 days and did just about 24,000 miles. You can fly no further on earth. It was painful and I’ll be sharing my thoughts in a piece on Novo in a few days when I recover. If I recover.
One of the people on the tour was from Pinetree Capital. Pinetree is a mutual fund of sorts with investments in over 401 junior resource stocks. The legendary Canadian investor Sheldon Inwentash runs it.
The company came to mind first because of the 10% or so they own of Novo Resources, making them the 2nd biggest shareholder but more so because of the absurd price of their own shares.
On September 28th, 2012, Pinetree closed the quarter at $1.21. A couple of days ago Pinetree reported Quarter End Net Asset Value for their fund at $1.91 a share. So you pay $1.21 for $1.91 worth of junior resource assets run by one of the smartest guys in Canada. That’s absurd.
Pinetree Capital happens to own some 3.2 million shares of Novo Resources. That’s 10.1% of the shares they control. In effect, by buying Pinetree, you are getting $1 Novo shares for $.63. You are getting $100 bills for $63 apiece. I don’t think any investment gets better than that.
Maybe it gets a little better. Pinetree issued $75 million worth of 8% debentures a couple of years ago. They have a coupon of 8% and pay about 9% to maturity at May 31, 2016. As of today the debentures trade at 93.75. So for punters who want some interest with their investment, the debentures offer a good interest rate.
And for the real punters in the crowd who don’t want $100 bills for $63 or 9% interest with an option on shares, there are always the PNP.WT.B warrants for shares at $3.50 until July 11, 2013. Those go for $.08.
For the vast majority of investors, investing in a resource mutual fund selling at a steep discount makes a lot more sense than trying to figure out what lottery ticket to buy. Pinetree is an investment for all seasons and all investors.
I like Pinetree but as always, you are responsible for your own due diligence.

Pinetree Capital Ltd
PNP-T $1.10 (Oct 18, 2012)
PNPFF-PK 136.4 million shares
PNP.DB 750,000 shares
PNP.WT.B 8,638,650 shares
Pinetree Capital website
###
Bob Moriarty
President: 321gold


Read more at http://www.stockhous...w7xfoOLKUXPy.99

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now 8.5 cents ... update

this fund has done a great job... at destroying wealth !

 

PNP_zpsxnpsimz2.gif

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