RE: CFO response re: moronic valuation policySorry - exchange traded warrants would be valued at market. It is the non-trading, out of the money warrants (a VAST majority of Pinetree's holdings - some 140M+ shares altogether) that Pinetree choses to carry at $0.00
However, anyone familiar with warrants and/or Black-Scholes realizes that these DO have significant value.
For example, Pinetree owned 6,000,000 warrants on Western Potash at ast quarter at an exercise of $.75 through October 15th, 2009 - they carried these on their balance sheet at a value of $0.00 - fast forward to today and these warrants now have an INTRINSIC value of $4,860,000.
Something that was 'worthless' became worth $4.86 million... Go figure...
These companies that Pinetree invests in are required to value any broker warrants they issue on their balance sheets using Black Scholes - why Pinetree choses not to use Black Scholes as well is utterly moronic.
Their investees have HUGE volatilities - on average well above 100% - FYI this is more than DOUBLE the volatility of a company like Baidu...
Thus the potential value these warrants hold is VERY real - and considerably large --> ~$50 million by my calculations, if not more...
That's nearly another $.50 in NAV on a company already trading at a 50%+ discount... crackerjack accounting there brainiacs...
I PRAY I get to meet Mr. Inwentash and/or Goldberg someday...