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Stockchase Opinions

Michael SmedleyPinetree Capital Ltd.PNP.TOBUYSep 10, 2007

Merchant bank into very small mines and oil/gas companies and often participates in the financing and raising money. PE ratio of 3, reflecting the PE ratio of the mining sector. You have to accept the risk that there is no further downsizing in the minin
$4.55

Stock price when the opinion was issued

$8.90

As of Jun 12, 2026. Market Open.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Nov 27/25, Down 17.8%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with PNP has triggered its stop at $10.  To remain disciplined, we recommend covering the position at this time.  

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Unlock this Panic-proof Portfolio opinion with Stockchase Premium

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

PNP is an investment bank focusing on small cap and new start-up in the technology space in Canada.  It trades at 4x earnings, 1.2x book and produces a robust 38% ROE while growing cash reserves.  Most recent earnings showed a 35% increase in EPS.  We recommend setting a stop-loss at $10, looking to achieve $15 -- upside potential over 18%.  Yield 0%

WATCH

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.

HOLD

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.

COMMENT

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.

HOLD

Very high beta. Thinks through the fall it will do better and then drop off in the spring. He would be looking to take profits off the table.

WEAK BUY
(Market Call Minute.) Very speculative. This is only for mad money. Interesting by. Tends to trade between $1 and $2.
RISKY
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.
COMMENT
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.
SELL
A Warrant is a very long dated option. Whatever you paid for it, sell that amount of capital (take profits).
WATCH
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.
BUY
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.
RISKY
You have to be prepared to sell this thing into strength. This stock will come back a long way, but maybe not to pre-crisis levels.
DON'T BUY
Almost like an open-ended fund that buys juniors and most of what it owns has gone down dramatically. Would take a pass on this until you can look at their portfolio and see a true bottom in the Junior markets.
COMMENT
Owns a lot of micro cap and small-cap resource stocks. Right now, all those stocks are getting hammered. At last count, it was trading below net asset value. Cheap, but if the net asset value keeps on going down, there is no reason for the stock to go up in the near term.