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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

Comment by Jace1on Aug 09, 2012 3:34pm
260 Views
Post# 20200029

RE: RE: Production

RE: RE: Production

You are oversimplifiying things. Reserves, debt, cash and exploration upside all play a role in valuation. To answer your question, PTA should be producing approx 1800-1900 boed once LM3 is online. PMD as I recall was guiding towards 4500 boed for 2012.

Simple way to look at all this is risked NAV. It values the Company based on reserves, exploration upside, debt/cash etc. Junior companies such as these don't usually have a cash flow component in their valuation yet. As the boed increases, analysts start to do a blend of NAV and P/CF.

PMD risked NAV was in the $2.20 range on average when it was taken out for $1.60, a discount of almost 30%. PTA current risked NAV after LM3 is probably 0.26-.27 I would guess. Applying the same 30% discount results in about 0.19 take out on in the current environment. Given the upcoming catalysts, I doubt shareholders would be too keen on such an offer...but there are still a ton of sellers out there who would leap to get out for around 0.20.

PMD shareholders got a raw deal. But that is the environment we are in. They also had a working capital deficit, which necessitated they buyout somewhat.

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