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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 mrpanickon May 20, 2014 5:33am
197 Views
Post# 22576747

RE:Intrinsic value PTA after merger

RE:Intrinsic value PTA after mergeroilinvestor, I suggest that you look at the presentation Petroamerica gave on the Suroco deal. They show the valuation of the combined company as compared to larger peers for several different metrics. PTA is valued at less than a third of larger peers in terms of enterprise value / cash flow and enterprise value / flowing barrel. Larger peer group may deserve some premium because they are larger, more diversified, operate their wells and have longer reserve life. I think the valuation gap is excessive even accounting for those factors. Also PTA is working to resolve the reasons for the discount by growing into a larger more diversified company (their strategy for the Suroco deal). PTA stock has the potential to grow in 2 ways. The production / cash flow is growing and the market multiple should grow over time. Those 2 factors multiply by each other. If production doubles over the next couple of years and the enterprise value / flow barrel gets closer to peers, there is a potential for about a 5X gain in the stock price. Do your own DD of course.
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