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E Split Corp ENSRF


Primary Symbol: T.ENS Alternate Symbol(s):  T.ENS.P.A

The objective of the Class A shares is to provide holders with non-cumulative monthly cash distributions and the opportunity for capital appreciation through exposure to the portfolio. And The investment objectives for the preferred shares is to provide holders with fixed cumulative preferential quarterly cash distributions and return the original issue price of 10.00 Dollars to holders upon maturity. The Company has a portfolio comprised primarily of common shares of Enbridge Inc. Enbridge, a North American oil and gas pipeline, gas processing and natural gas distribution company the Enbridge Common Shares or the Portfolio and intends to purchase Enbridge Common Shares from time to time in the market or through participation in future public offerings by Enbridge. The Advisor believes that the Company offers investors an opportunity to gain exposure to Enbridge, one of the worlds largest energy infrastructure companies.


TSX:ENS - Post by User

Post by Obscure1on Apr 26, 2024 12:05am
133 Views
Post# 36008653

Premium to NAV down to 1%

Premium to NAV down to 1%It got as low as 6% last fall and 4% in January.  Both times, the Premium returned back up to double digits pretty quickly. 

Looking at the Premium alone can be a good predictive tool or a bit of a mugg's game depending upon the Premium is arrived upon. 

In the past when interest rates were close to zero, the high yield offered by ENS was just too juicy to ignore so investors would bid the price of ENS up.  When older investors are living on a fixed income, sacrifices to risk are often taken to make ends meet.  When interest rates shot up, the extraordinary high yields of ENS offer less appeal, especially after shareholders have been punched in the mouth with a Raise. 

I think ENS is suffering from the latest punch in the mouth as there is no logical reason for the ENS Premium to be almost zero.  I have had back and forth discussions with Experienced on the logic or lack of logic of investing in Splits, and ENS in particular.  I share Experienced's concerns when it comes to most Splits, but I firmly believe that ENS's only holding is about as close as it gets to risk free in terms of equity holdings. I aso believe that a 13+ percent yield for ENS paid monthly is too high based on the risk profile and that is why I jump in for large positions when I see inefficiencies show up.  

I agree with Experienced that some ENS shareholders are getting better educated about what they own in ENS and it only takes a few to wring out inefficiencies in the market.  As such, I don't think investors will be foolishly bidding up the price of ENS like they did in the past.  
 
Therefore, what ENS shareholders need to do to stay out of "Raise" misery is to pay attention to the price movement of ENB and to the Premium to the NAV to a lesser extent. Middlefield and the other Splits are getting more crafty about finding ways to create Raise opportunities but they only have so many new "interpretations of the legislation" to rely upon.  

We as ENS shareholders can actually prevent Middlefield from doing future Raises by being better educated.  Until more people catch on, I actually like the Raises as they can create trading opportunities, which was never the intention of the issuers of Splits. 
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