Pinetree – Still a Buy

Recommendation: Buy

Pinetree Capital Corp. is as close to a uranium mutual fund as you will find anywhere, and I still like this stock.

Last week PNP.TO closed at $17.45; on December 1 it closed at $15.45, so it’s down $2, or over 11% in one week. That would normally appear to be bad news, but when you consider that at the beginning of October Pinetree was trading around $9, the stock has had a good run, and a consolidation is healthly.

The volume (see the blue rectagle below) is moderate, so the smart money isn’t selling, and the MACD has come down to more reasonable levels, which is good.

Obviously a penetration of the uptrend line drawn off of the October lows would be worrisome, but let’s not start worrying until we have to. I rate this as a buy, and see no reason not to continue accumulating as cash becomes available.