Investment Q&A

PNP is a small cap Venture capital and private equity company at $152M in market cap. It is up 143% over the last year. Quarterly results typically vary quite a bit for these types of companies. Earnings vary as investments are monetized, or not. PNP hold more than 10 separate equity investments, public and private, making up the majority of its portfolio, with some cash. No analysts cover the company. But it often gets a premium valuation becaue of the connection to the CSU executive suite (Damien Leonard, son of Mark, is CEO). EPS has grown fast in the past couple of years as its tech investments have paid off. PNP has been accumulating shares of TBRG, and now owns 18% of that company, worth about US$70M at current prices. We like the company, but shares are thinly traded and volatile. We would consider it like a mini-ETF of small cap investments, and certainly well-managed. But buyers need to be comfortable with a premium valuation and low liquidity, and no dividend. Insiders are certainly committed at more than 60% ownership. We would be OK buying today if an investor can 'park' the stock for five years.