Q: Hi Peter
Can I get your view on Pinetree. Can you comment on their recent quarter. Also the stock is trading above book value and has had a great run in 2024. Can you comment of the premium to book. thx
Can I get your view on Pinetree. Can you comment on their recent quarter. Also the stock is trading above book value and has had a great run in 2024. Can you comment of the premium to book. thx
5i Research Answer:
PNP is a small cap VC and PE company at $81M in market cap. It is up 123% over the last year. Quarterly results typically vary quite a bit for these types of companies. PNP had $5M in revenue for the recent quarter. PNP's book value per share has been increasing nicely and for the recent quarter came in at $6.43. PNP held 12 equity investments, 11 public and 1 private at quarter end, making up 94% of its total portfolio with the remaining balance being cash. We think the recent momentum in BVPS and the stock also having high insider ownership at 43.35% are contributing factors to the premium to book valuation. The connection to the CSU executive suite (Damien Leonard, son of Mark, is CEO) is also positive.