PNP.TO – Pinetree Capital Corp has had an interesting ride. On November 8 the high for the year was hit at $18.60. A minor correction started, until December 4 when the bottom dropped out on news that the OSC was investigating the Chairman for insider trading, causing Pinetree to plummet to a low of $11.70 by around the noon hour that day. Then, Dines Letter issued an Interim Warning Bulletin around 1:00 pm advising subscribers to “back up the truck” and start buying, which they did, driving Pinetree up to a close that day at $16.10. Not bad for one day’s work.
As the chart over the last three months indicates, we are now in a wedge formation. I believe that that one of the basic laws of physics is that an object cannot be travelling in two directions at the same time, and that is certainly true of stocks; they either go up, down, or sideways. Since the chart is both going up and down, something has to give.
Either Pinetree falls below $15 to break the uptrend, or it increases above $17 to break the minor downtrend. I don’t like betting against solid performers in long term bull markets, so I would be a buyer, not a seller, at this point. However, a fall below $15 would probably trigger at least a short term sell signal, although I would hold a day or two past that to confirm the diagnosis, given the volatility in this security.
 
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I have sold my Pinetree shares as well as any stock I had that was related to Pinetree (ie Mega Uranium et al).
I am a bit concerned as well about James Dines. It would have been more forthright for Mr Dines to have spoken about the fraud investigation being pursued by the OSC against PNP rather than to simply hype the stock. Mr Dines probably holds shares in this stock and would not like to loss his investment but to be fair to the subscribers of his news letter he has to be more unbiased and honest. I am unsure if I will renew my subscription as a result of this negligence on his part tobe straight forward and honest with his subscribers.
I think your points are valid. There is no doubt that Jim Dines owns shares in Pinetree; he admits it at the bottom of the last page of every newsletter. I agree that more honesty would be a good policy. We will see what he says in his next letter.
For my part, I am reducing my holdings in Pinetree and Mega, but I am not selling everything, because even if the OSC allegations are proven, the stocks probably have more upside. Time will tell.
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