E Split Corp ENSRF

ENS goes from scary to a bargoon in two days

[Obscure1]

The Premium to the Coomon NAV was over 15% at one point on Wednesday which is higher than when Middlefiled did the Raise a week ago (note that the Premium on the Prefs helped make the last Raise happen).  Today, the Premium closed under 5%.  At this point, ENS is a relative bargoon as the Premium is low and the yield is almost 14%.

That's what happens when ENB goes up more than $2 per share in two days while the ENS share price didn't move.  

It always amazes me how so many ENS shareholders ignore the math which under scores my belief that they don't have a clue what they own.  

Where do we go from here?  I dunno.  It should depend upon what ENB does going forward but who knows how ENS shareholders will respond IF they respond at all.  

My guess is that ENB will continue to run up a bit from here ahead of its May 14 ex divi date.  If that is the case, I don't think Middlefield will get the chance to do a back to back Raise.  However, investors should be aware of June 1st as Middlefield has a track record of doing Raises on the first of the month following an ENB ex-divi date.

[cttglvr]

I was very surprised at the ENS stading today but like you said...many holders don't know what they own. When I saw the premium drop so much today with ENB up over a buck, even though I'm overweight ENS I bought another 1K shares at $11.13. I'm still surprised (although I shouldn't be by now) at the disparity between ENS and ENB trading. I would think ENS will trade up somewhat as

[Experienced]

ct....you kinda answered your own question with your post The disparity between the price action is reflective of the high premium that retail investors had assigned to ENS and then got worried about it since it could result in a raise by Middlefield.  So there was enough selling pressure to offset what would otherwise have been a great up day for ENS. This is in part why I am not a fan of

[Obscure1]

"I suspect that if we hadn't seen such a good day for ENB, the SP of ENS would have fallen by quite a bit." One would think that would be true, but the trading patterns often don't follow "what should be".   Most ENS investors have a passive interest in the stock at best.  That is likely due to the fact of how it was presented to them when they first

[Experienced]

Obscure.... Your script is exactly the "book script" when I worked on the Street.  You may well have used it yourself at one time...lol When I worked on the Street, I had a very simple test - I woudn't sell anything unless I would buy it myself. In terms of your comment about holders of ENS and most other splits, I believe that some holders of splits are getting more

[cttglvr]

If you don't mind I have a couple of questions for Ex and Ob. 1. ENS.PR.A traded triple the average number of shares closing up 6 cents at $9.88 Friday. It did trade as high as $10.00 which would have been an 18 cent gain (almost 2% if it had held). Why was there such a disparity between the commons and the preferreds? They both got hit during the raise but there was no love for the commons

[Experienced]

ct....couple of great questions... Obscure may have more to say on this topic. In regards to the ENS preferreds vs the Commons, they really two very separate animals. There is no particular reason for them to trade in unison.  Essentially the dividends in the preferreds are guaranteed and are paid out of the income from the dividends received by ENS.  The dividends on the commons are

[Obscure1]

hi cttglvr I was writing a long explanation out but TLDR came to mind. My takes:  * Prefs are the domain of the Buy Side (funds) driven by interest rates while Commons are the domain of the Sell Side (investment dealers) driven by news events and emotions.  They are two different worlds inconveniently blended together in Splits that really don't make sense.  I suspect that

[Experienced]

Obscure...good points as usual Your point about people wanting to get out of the pref side of the units is well taken.  A lot of people who bought say the latest raise by Middlefield where enticed by the discount on the commons and really didn't want the pref side and so they sold thinking that they were buying the prefs at a discount. Personally, I think people buying into the raise