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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 Irishmantooon Aug 18, 2012 10:20am
393 Views
Post# 20232689

Warrants

Warrants

Man you guys like to beat this warrants thing to death...lol

First of all, nobody should care about whether there was a half a warrant  per share or full warrant in these private placements or bought deal financings. When they are now free trading on the exchange you are buying ONE warrant for whatever the bid/ask. Some warrants like the ones that Deans Knight did through their debenture are not free trading (at .20 cents exercise) and we will never get a crack at those.

If the stock goes to say .35 then your "B"'s will be worth whatever the market thinks the time value plus the potential upside of the stock is. (Say .12 cents)

You don't want to exercise your warrants until the last day before they expire EVER (IMHO) As they become more valuable they start getting more liquid and the gap in the bid and ask will stay tight. So I have quite a large postion of  "B''s myself.  Exercising them doesn't even enter my mind, but the leverage they provide does :)  So stock goes to say  .60 cents warrants are probably .35 cents, trade them like any other STOCK.  I'll sell say 100,000 (15% of my warrants) Bingo $35k in my account. Stock is .75 warrants (.40 cents plus time value say .65 cents) sell another 100,000 $65k in my account, still have 600,000 left.

Hypothetically say we get to the day before the last day, May 9th 2014 (brokerage house wants 3 business days notice to exercise) so what are my warrants worth? What is the price of the stock? Ok, stock is $1.00. So, your warrants are worth .63 cents ....why? because there is always a broker or house that will buy your warrants for the .02 cent discount and they buy a few million "B"'s and make $20,000 for actually exercising and putting up a large amount of cash, and that's why you sell the final amount (100,000) at .63, then decide hmmmmmm got $400,000 in my account do i want to buy shares, or more warrants.

Other lads may have other ways of doing it and think my way is she-ite, but there it is. Oh happy day in 18 months with 10,469 bopd (write that number down) and the buyout at $1.35.

 

cheers

 

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