RE:RE:PNP may announce NOV NAV tomorrow or Mondayunless you work at Pinetree you can't say that there is "zero chance..the debt has not fallen". If you read their prior announcements you wuld know that they have been selling invsetments and buying debentures on the open market. I do not defend them as Mr. Sheridan seems to be good at one thing - losing value but you have to look objectively. He has no choice but to fix their debt/asset ratio. Otherwise he would lose control of the fund (rightfully so i would say). But who would easily give up without a fight a job that pays 1M a year? He might be irratiional in investments but most likely - rational when it comes to his wealth. PNPFF and doesn’t worth buying even at this levels as Sheldon has a staggering history of losing value and his current portfolio is quite questionable. I created a portfolio based on their September disclosure and made changes based on the news since then. The value of that portfolio as of today is 82-85M CAD (unless the sold some positions) and they have still debentures of about 50M (again assuming they ahven't bought any debentures for the past 2 months). NAV is about 34M but then they have 5M of annual interest on debentures plus operating expenses of about 6-7M per annum. The market cap is 22M and reflects belief (i assume) that the guy would continue to lose money which he would in my opinion. His portfolio’s NAV could go don materially if the company starts selling as they would be the market movers big time if and when that happens.
There is value (they accumulated over 500M in losses over the last few years) and some hedge fund could take them out for that purpose only and plus could shed some value from selling all their investments. The guy who runs the company was lucky during run in uranium cycle and then went bullish on gold and turned out to be on the wrong side by betting on juniors... then as he was losing miserably he switched to technology. Great case to analyze how being lucky in the beginning makes you think you are a genius only later to wipe you out…well in this case he wiped investors out.