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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (40234)	11/22/2010 6:16:58 PM
From: E_K_S	Read Replies (1) of 78699

Hi Paul - RE: TPZ Be very careful on buying this especially on low trading volume. My order executed at $23.02/share (a discount to NAV of 7.8%), the specialist immediately took the bid down to $22.80, traded some shares at $22.89 then raised the price back to $23.25 bid x $23.35 ask. If you are patient you can save $0.25/share or almost 1% of the NAV if you stay on the Bid price (based also on a fair discount amount to NAV %). When people want out of the fund, they just send through a market order and the executed price usually falls like a rock. I was trying all day Thursday & Friday last week to get $23.27/share and never gave me any stock. I was surprised I could get shares under $23.00/share. The stock just went ex dividend so the monthly dividend amount ($0.125/share) is not even priced in the stock. My TPZ buy was motivated by (1) very low return at my Credit Union (now paying 1% annual!) and (2) many of the NG wells that will be coming online in several of the U.S. shale regions. As a result, many of the NG gathering MLPs in the fund should see higher activity in the months and years ahead. More volume of NG moved. more income for the MLPs. Thank you for providing me the link to the Shale Natural Gas, Oil and NGLs and ESA forum. jrhana the board monitor is very diligent about making very relevant posts ( Subject 57548 ). It's very interesting to read and learn about all the different companies drilling and building out the infrastructure in the region(s). I can understand now why the big integrated oil companies are eager to get money invested. It's not a bubble yet, but I could see one developing w/ all the new money splashing around and as many of these smaller E&P companies get bid up in price. The ride up can be fun but the fall could be devastating as Encana Oil & Gas discovered recently by abruptly closing down marginal wells recently drilled. EKS FWIW I checked the NAV for Flaherty & Crumrine Preferred Income Fund Inc. (PFD) and was surprised to see it so low at $11.93/share still priced at a 3% premium to it's NAV. cefconnect.com I closed my position on this one in the $13.00 area when it looked like the Fund was getting to high in price compared to the CefConnect NAV value.

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