Hey folks. I was poking around at the Pinetree Capital site today. Just like the Sprott thread I am creating one for Pinetree Capital. The exception is this: I have a link to their investments! I wish Sprott had the same thing! As I have mentioned before if a company has Sprott and/or Pinetree Capital investment backing it is a good indicator of a good opportunity. Pinetree is kind of like a mutual fund. They are publicly traded and have warrants available too.
So, we can use this thread to discuss some of the Pinetree Capital PM investments. They have about 45% of their portfolio invested in PM's. Additionally the quick fact sheet and their latest preso are both worthwhile views. The latter discusses their reasons for investing in specific resource sectors. They largely use macro investment themes. There is a section on case studies which are interesting.
Quick Fact Sheet
I hope this helps everyone to build their portfolios. Of course you could just invest in Pinetree Capital to get exposure to their investments. Or hunt and picks some individuals on the above list.
Good stuff Dr., I remember Pinetree, looks like the stock is trading under NAV, with 200 precious metals stocks, I think Pinetree stock could do very well in the months and years ahead.
Thanks for this tread TGD.
PNP is one of my largest holdings... other then physical Au & Ag.
Pinetree Capital looks great for a lazy speculator like myself. It has done all the research to find the micro-cap companies, taken positions in them and loaded up on warrants as well. It reduces the transaction cost of trying to buy all these different stocks and don't have to worry about large bid-ask spread. It had diversified political risk, so I don't have to worry about unfavorable elections.
It also trades at a discount to Net Asset Value. Right now, I'd guess it discounted by about 30%, which is pretty incredible when you think about it. Yet it has the potential to sell at a premium to Net Asset Value in the future. For a while back in 2007, it was trading at a 135% premium to Net Asset Value. Funds like this will be the only options for institutional investors to enter into these natural resource Mirco-Cap stocks in a big way. For a while back in 2007, it was trading at a 135% premium to Net Asset Value.
The only flaw I see is that it holds other natural resources besides precious metals, but it time I believe that will be looked at as a benefit. Just like people knock silver for it's large industrial demand. Uranium stocks appear to be bottoming out, Rare Earths are a good buy, coal is being attacked heavily by the environmentalists. Not sure about base metals or oil, but I can't see them falling in price. New production will be essential and the juniors will be the only ones to find it.
Seems like a good opportunity from the arbitrage side as well as the long term hold side.
As at June 30, 2011, Pinetree's unaudited net asset value per share ("NAV") was $3.61
Drop fom ("NAV") $4.84. But @ $2.60 a share I bought more...
Anybody knows what kind of salaries management takes? Thanks.
Originally Posted by donkey
I snipped the relevant parts from the MD&A's that are released in March each year. I took the tables for the previous 12 months and not the tables for the trailing 3 months.
https://img6.uploadhouse.com/fileuplo...1ca8420021.jpg - 2010
https://img4.uploadhouse.com/fileuplo...e47e486c1e.jpg - 2009
https://img2.uploadhouse.com/fileuplo...f60c72778e.jpg - 2008
https://img1.uploadhouse.com/fileuplo...1d8fe021ff.jpg - 2007
https://img8.uploadhouse.com/fileuplo...72b8f0669a.jpg - 2006
The bonus agreement from the MD&A, March 2008:
The annual bonus payable is equal to 10% of
the realized pre-tax profit on the Company’s non-limited market dealer business plus a bonus
equal to 10% of the limited market dealer’s business’ net realized profit.
To bonus agreement from the MD&A, March 2011:
Pursuant to the CEO’s employment with the Company, he is entitled to receive an annual bonus
equal to 10% of the increase, if any, in the value of the Company’s shareholders’ equity
calculated as at December 31 of the applicable year (and payable after the fiscal year end) and
adjusted to eliminate changes in shareholders’ equity which would not generally be attributable
to the CEO’s performance (such as increases in share capital as a result of financings, stock
option or warrant exercises), over the value of shareholders’ equity calculated, as adjusted, as at
December 31 of the most recent year in which a bonus was payable to the CEO.
So essentially the CEO has been given a bonus of 72 mil$ for a shareholder equity increase of 586 mil$ from Jan 1, 2005 to Dec 31, 2010. When you include the bonus the total SH equity rise would have been about 660 mil$, which warrants a bonus of 66 mil$. The 10% would align pretty well if it weren't for that special 6 mil$ bonus last year.
The bonus agreement starting Jan 1, 2010, seems to take any SE increase beginning at 342 million (342 -> 674 (642 after bonus) = 32 mil$ bonus). However you can already see substantial bonuses had been afforded to the 472 level in 2007. With a new agreement beginning at 342 they could technically say there is no 'double dipping' but only based on the new agreement. Seems like there were bonuses paid up to 472 according to the old agreement. In the big picture, minus the 6 mil$ bonus in 2009, it seems to align as 10%.
That's what I'm presuming, anyhow. Let me know if I tripped up anywhere. I double checked the CEO bonuses and the SE numbers and they were correct. I shouldn't be making any judgments about this stuff because I don't know all the background or possess the skills to decipher all the reports thoroughly. I'll be happy enough as long as they use the 'high water mark' idea going forward. I'm still confused about the 'special' 6 mil bonus in 2009.
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.
I've looked into PNP a while ago. The following was enough for me to stay out:
What the article fails to mention is how Sheldon has given an immense Line of Credit to the company for their use.
Instead of investing directly into PNP, just watch what they buy or better yet, what Sheldon buys directly. You should see the insider buying he's been doing into GCU.V as of late. He's building quite the position in it. (I personally own a lot of GCU via private placements over the past number of years so I am partial to it)
does Pinetree not have a URL page where they list the share price to the current NAV ?? I can't see it
that Pinetree has been purchasing large amounts of CMA (Cream Minerals).
Just noise, until it is confirmed, but CMA's stock has been on the up with higher than normal volume.
Are you suggesting a buying opportunity or that we should just focus on what Pinetree is investing in?
You nailed Sprott and Pinetree ... the big two. (One must be extremely cautious following those juggernauts and expecting to make money ... they dictate terms and they are grotesquely bad for existing equity every time.)
A third player, and one that is trading at a SIGNIFICANT discount to book value is Aberdeen International.
but pull up a one month chart for CMA.
I have been trading CMA since it was at $.16. Just trying to figure out what is causing this recent surge.
OK, since I don't know what is CMA? Country Music Association?
CMA - Cream Minerals
TSX Venture Exchange - CMA
US OTC BB - CRMXF
Frankfurt Stock Exchange - DFL
Went crazy today, I am guessing somebody knows something.
God I am sorry. I should have known that from the above posts. Too many websites open at once. LOL. Thanks man.
just got filled.
Not buying it though, just saying.., I'd been waiting but spent money elsewhere..