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

Cohen & Steers Tax-Adv Pref Secs and Inc Fund > Short sighted investors selling off PTA today.

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Comment by Crotchon Jun 20, 2014 9:49am

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Post# 22679050

RE:Short sighted investors selling off PTA today.

mirage2014 wrote: Makes no sense as the combined company will be grossly undervalued. Are we seeing some manipulation taking place this morning? Hmmmmmmmmmm.

Not manipulation, but pragmatism. Selling now in the mid 30s makes a ton of sense. The post merger share count will be huge. Even with the cash-option, it's only going to keep 34,000,000 shares from getting into the pool. That represents maybe 10% of what the total dilution will amount to.

You will be looking at 1 billion shares by the time this is done. All for a company with declining production at it's core asset, and limited success on it's other properties (all of which are non-operated ).

There will be a share roll back, but before then, the price will be eroded further. Smart money will sell now, and buy back in later (maybe).

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