Jason Donville
Pinetree Capital Ltd.
PNP-T
COMMENT
Feb 06, 2013
This is a bundle of super, super speculative companies and the market goes through these periods of speculation and promotion. The question is, is the next speculative cycle going to be in mining or somewhere else. If it is going to be in mining, this company will come back. This is one that you don’t put any serious money into it.
Like a little mini mutual fund of small-cap resource companies. Track record has been pretty good. If you believe in the small-cap space, this is a pretty good investment.
Collection of about 300-400 little companies i.e. a holding company like a closed end fund. Has a lot of natural mining resource plays and in the present market situation, this could check back quite a bit. A high beta play that you Buy after the resource sector has been hammered.
Like a merchant bank holding company where they own 300-400 really highly speculative companies. If we are in a market trough and we go into a bull market, this thing will really pop. Not for the faint of heart.
A kind of lottery ticket company (a boutique financing house, a merchant bank). When company is bullish, harvest this stock and when everyone is bearish you accumulate it. Very counter intuitive.
This one is going to be tough. They kicked out management. It had to sell off a lot of assets to avoid contravention of its covenants. Now you have to sit with it. He would call it a reluctant hold. If resources go up, it could be a good lottery ticket. Don’t average down.
Interesting pedigree on the management team. Used to be resource-focused, had been planning to shift more to technology. Chart's perked up, may be time for him to revisit the stock.
This is a bundle of super, super speculative companies and the market goes through these periods of speculation and promotion. The question is, is the next speculative cycle going to be in mining or somewhere else. If it is going to be in mining, this company will come back. This is one that you don’t put any serious money into it.