Jason DonvillePinetree Capital Ltd.PNP.TOCOMMENTFeb 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.
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.
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.
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.
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 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.
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.
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.
Had a big drop last August followed by a nice rally in an attempt to recover from the highs. Market gave up on any positive news late last fall and now the stock is making new lows. Long-term prospects do not look good.
A merchant bank that owns a significant portfolio of resource stocks including mining, uranium and precious metals. Although the valuation and price to NAV has declined his concern would be the liquidity of the underlying stocks.
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.