Saj Karsan
Long only, deep value, contrarian

Pinetree Capital's Debt In Free Fall, Now Cheap

Canadian investment firm Pinetree Capital (OTCPK:PNPFF) has been a destroyer of capital over the last few years. Consider the following chart depicting the company's Net Asset Value (NAV) over the last decade:

(click to enlarge)

As of the latest figure given to the end of June, the company's NAV is just $0.76/share. Meanwhile, the company's equity trades for just over $0.33/share.

But even at a 55% discount to NAV, would I recommend the equity? Not a chance. The company is heavily invested in junior plays in the resource sector, which continues to be plagued by low prices and outflows. As if that weren't enough, management has a history of diluting shareholders, with warrant handouts and share issuances. For...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details