PNP Financial Statements & Yearly Reports

[BiGReD]

I got the reports last week, and finally am getting around to taking a peek at them, In addition to getting blown away by what they are paying Sheldon, as compared to Larry and Donato, I noticed the chart on page 14 of the smaller book, a comparison of the S&P/TSX composite index from 2003 through 2007, and I didn't feel so bad...

Then I realized from the end of 2007 through the end of March 2008, the stock price has fallen from $5.00 down to $3.00, a LOSS OF 40%!

I've said it before and I am sure I will say it again I wish I had sold all of my PNP in 2006 and walked away...

Do you find anything interesting in these reports?

-CaKe
 

[adriandunn]

IIRC, PNP's annual report showed an NAV of somewhere north of $4 / share.  Since they are heavily weighted to precious metals, and the gold index is up 10% this year, I think it is safe to say that their NAV is almost certainly above $3 / share at the moment.  You could do the calculations yourself, but it would be rather tedious to build a spreadsheet from their sedar filings.

I was a long-time bear on PNP, especially when it was trading for 3x NAV, but at these prices it seems like a good investment.  The biggest downside risk (other than a collapse in the price of gold), is that Sheldon gets indicted for any financial shenanigans he pulled while running the firm.  There was an OSC investigation into him for insider trading about 18 months ago, and I don't believe either PNP or the OSC has announced a resolution to the case, so it may still be ongoing.

$3 is a good entry point, but I would start taking profits around $4, and sell it all by $5.  Note that $3 -> $4 is a 33% gain, which is quite phenomenal, about what you might expect to earn every 3 years.

[Depleted]

Good Advice AdrianDunn. I agree on PNP around the $3 level. I have been watching it carefully, and have noticed it has hit $3  about 4 times, but seems to bottom there. Good entry points don't happen very often, so people should take advantage of it with some attack capital. When PNP decides to go, you will be rewarded big time. They do have some gold holdings also so they have exposure to gold. Also, when this one decides to move, it will leave such a vacuum, you won't be able to get in, that is how quickly this one can move up. Remember it is a favourite of Mr Dines, and is in Group 1. Enough said...Good Luck to all....D