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Cohen & Steers Tax-Adv Pref Secs and Inc Fund V.PTA


Primary Symbol: PTA

The Funds primary investment objective is high current income. The Funds secondary investment objective is capital appreciation The Fund seeks to achieve its investment objectives by investing at least 80% of its managed assets (i.e., net assets plus assets obtained through leverage) in a portfolio of preferred and other income securities issued by U.S. and non-U.S. companies, which may be either exchange-traded or available over-the-counter. In pursuing its investment objectives, the Fund seeks to achieve favorable after-tax returns for its shareholders by seeking to minimize the U.S. federal income tax consequences on income generated by the Fund. There can be no assurance that the Fund will achieve its investment objectives.


NYSE:PTA - Post by User

Post by STVPon Apr 01, 2011 12:24am
540 Views
Post# 18371217

Warrants

Warrantsfor all those who were saying that some are selling shares because they are buying warrants, it just doesn't make any sense to me.  Consider that the cheapest exercise price of those warrants are
.60 then the next level is
.75 and then $1.25. Now since the stock is at such a depressed price, it absolutely makes no sense to buy any warrants when you can buy the stock for under 30 cents.  Only day traders trying to make a quick buck will be trading the warrants.

Ask yourself this simple question, who would buy an option to buy stock in the future at 3 times a higher price or greater than wht the actual stock is trading at today - obviously that would only be traders trying to trade the warrants.  The most important reason someone would own warrants is that they have a reasonable assumption that the stock will be much higher than what the exercise price is (in PTA's case, the lowest price would be 60 cents) before those warrants expire.  Why not just buy the stock now and hold it instead of the option to buy it sometime in the future for at least 3 times more than what the price is today.  Some people really need to think before they actually make comments about the warrants unless their focus is dat trading.

It's rediculous where PTA is trading at today.
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