INI.V – Independent Nickel Corp. – now in the portfolio

I am adding a new stock to my portfolio: INI.V – Independent Nickel Corp.; you can read more about them on the Independent Nickel web site. Here’s my thought process:

First, the chart looks good:

Since breaking out around 40 cents back in December, it has been in a great up channel. It appears to be at the lower end of the up channel, so it appears that now is the time to buy.

Second, this is a PNP.TO – Pinetree Capital Corp. holding. On December 18, 2006 Pinetree acquired a further 1,500,000 common shares of Independent Nickel Corp., so as of December 18, 2006 Pinetree held 3,750,000 common shares in Independent Nickel, which holdings represent approximately 11.8% of Independent Nickel’s shares outstanding as of December 18, 2006. Interestingly this holding is not listed on the Pinetree web site.

Third, the price of nickel has been doing as well as the price of uranium over the last few years. You can get historical data by going to the London Metal Exchange.

Fourth, I need to diversify my portfolio away from just uranium, and since nickel appears to be on the upswing, this looks like a good opportunity.

Finally, it has a market capitalization of around $35 million Canadian, so it’s not an insignificant company. It won’t be a core holding, but I think it will be a nice addition to my portfolio.