Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

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 hockeylad33on Sep 28, 2012 5:10pm
373 Views
Post# 20426206

Warrants

Warrants

There are no differences in the terms of the various warrant series, apart from their Strike Price and Expiry date.

I'm not sure why there is so much confusion.  The PTA.WT.B were a much better buy for the last 6+ months, as they have a strike price of 0.35/sh vs 0.75 for the PTA.WT.  They expire 5 months sooner, but it is certainly out-weighed by the significantly lower strike price.  They should be worth more that the PTA.WT, and the closer the SP gets to 0.35/sh the faster they will overtake the PTA.WT's.

In a rollback, both warrants get rolled back, and the strike price gets increased.  i.e on a 5-1 rollback, you get 1/5th the warrants and 5 times the strike price.  Sounds like a double whammy, but it is not.  EG.  PMD.WT, PRE.WT, GCM.WT, etc.  Definitely bad for the warrants IMO if there is a rollback.

 

example.

stock = $2.00/sh.   warrant strike= $1.50/sh.  

if you own 100 warrants, value = 0.50/sh x 100 = $50.00

now do a 5-1 rollback.

stock at $10.00, warrant strike is now $7.50/sh

you own 20 warrants, value = $2.50 x 20 = $50.00

 

NO CHANGE.

however if the stock is below the strike price, warrants get nailed IMO.  Also, the time value erodes quicker in my experience.

 

Bullboard Posts