RE:I do not understand this stockPRABHAT - I don't disagree with your margin idea, in fact i'm contemplating doing the same thing with BNS after it set a new 52 week low Thursday, and is now yielding 5.8 %. I mean, how low can that dog go, right ? Not to mention the interest paid on margin is tax deductible
Further, at 71 dollars, BNS is 25 percent down from it's 52 week high. Because it's dropped so much, it makes perfect sense that BNS has much bigger rebound potential than ENB.
And of course, let's not forget no one is out to shut down banks, and BNS doesn't have a pipeline running under water that is well past it's best before date, the whole topic of which has now turned in to an international incident.
Spin that whell, place your bets....
Prabhat wrote:"For no reason it starts going down though it has nothing to do with lower oil prices. This company just distributes oil and gas and also it is a utility company too.
Baffles me.
When goes down to $50 I willl buy more on margin because the dividend will cover the margin cost easily and there is potential for up side."