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Pinetree Capital Ltd T.PNP.DB


Primary Symbol: T.PNP Alternate Symbol(s):  PNPFF

Pinetree Capital Ltd. is a value-oriented investment and merchant banking company focused on the technology sector. The Company's objective is to maximize shareholder value. It invests primarily in equity, as well as debt and convertible securities. The Company holds approximately 8-12 investments, resulting in equity positions between 7% and 12% of assets (though its positions may at times reach or exceed 20%). Its subsidiaries include Pinetree Capital Investment Corp. (PCIC) and Emerald Capital Corp., and Pinetree Income Partnership (PIP).


TSX:PNP - Post by User

Bullboard Posts
Post by jpsartreanon Jan 29, 2008 10:57pm
508 Views
Post# 14286356

Pinetree''s Q4 ''07 and Q1 thus far...

Pinetree''s Q4 ''07 and Q1 thus far...I put this up on the CCJ board over on Yahoo (where I usually post) but thought some here might find it useful/interesting as well... I used a nifty little excel program I devised to get an idea of Pinetree Q4 results - nowhere NEAR as bad as I would have imagined... I was able to track 90 of Pinetree's disclosed investments from 9/30 - 12/31 Average decline was actually only -3.89% However, declines in larger holdings were more substantial -here is the performance of their top 10 investments ranked from 9/30 Fair Value for the period... Mega Uranium Ltd. -28.8% Noront Resources Ltd. -1.0% Dejour Enterprises Ltd. -30.6% East Asia Minerals Corp. -36.9% Solitario Resources Corp. 9.3% Gold Eagle Mines Ltd. 29.7% Bayswater Uranium Corp. -13.7% Caledonia Mining Corporation -21.4% Queenston Mining Inc. 51.5% Bolero Resources Corp. -45.0% Average decline there ~8.6% Assuming the total Fair Value of a Pinetree investment changed by the same percentage as the common shares on that investment over the quarter, from what I can gather it appears the Fair Value of Pinetree's total portfolio declined -9.18% over Q4 (this assumes this decline applied to their non-disclosed investments along with those disclosed -- though privately held -- positions). This is also ceteris paribus - that is, assuming no transactions occured during the quarter either.... Considering that the basic NAV per share was $4.05 at 9/30, I suspect Q4 NAV per share will be around ~$3.68 per share. Note this also assumes no overhead/administration costs, nor does it assign ANY value to out of the money warrants/options that Pinetree holds... (in that management continues along with this MORONIC valuation policy). Unfortunately for longs, Pinetree's Q1 this year is considerably worse thus far. Going back to 9/30 the average decline has been around -18.4% in those holdings. While the top 10 positions have declined merely -11.29% on average, Pinetree's largest holding (or should I say, what WAS their largest holding) has declined -45.3% (way to go JD!) Using the same valuation method as the previous post, the Fair Value of Pinetree's portfolio appears to have declined -20.89% from 9/30 up to today's closing bid prices. Assuming that basic NAV per share has declined the same amount suggests Pinetree's current NAV is ~$3.21 - again, applying the same methods as the prior post. Considering that they ascribe NO value to their options/warrants and - assuming Mega shows at least SOME sign of life going forward - I actually think Pinetree remains a considerable bargain here. Personally, I will continue holding my warrants (currently +13% there... lol) - and may look to add if it declines further.
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