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Strategies & Market Trends : Value Investing
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To: Paul Senior who wrote (40251)10/4/2011 1:38:27 PM
From: E_K_S  Read Replies (1) of 78672
 
I am keeping my eye on Tortoise Power and Energy Infra (TPZ). When we experienced the sell off in August (especially in Oil) the TPZ close end fund sold down below $20.00/share briefly. It reflected over a 10% discount to it's NAV.

cefconnect.com

Shares in this fund usually have a one or two day lag in adjusting it's NAV to the oil price drop. Sometimes it over shoots the "fair value" price by as much as 10%. A lot depends on the sustained fall in the oil & NG price, the general market sell off and the number of shareholders limning up at the exit door and willing to sell their shares at a loss (just to get out!).

I am monitoring TPZ and the price of Oil to see if there becomes a significant price imbalance. If Oil stays in the $74-$79/barrel range, TPZ could see it's all time low at $18.50 (10/5/2009).

Depending on the severity of the sell off and price of Oil, TPZ could overshoot again and provide a good entry point for a relatively safe play for some income producing assets.

As you recall, TPZ uses less leverage than The Cushing MLP Total Return Fu (SRV) and is less volatile and more apt to reflect a better discount to it's NAV. SRV usually sells at a premium to it's NAV. I sold all of my SRV because of this and continue to hold my TPZ.

I have a small GTC Buy in for TPZ at $18.50-$19.00/share as a way to play the Oil & NG sell off.

EKS
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