RE:RE:RE:RE:RE:RE:The leverage factorCorrection:
I mentioned that ENS takes in about $0.10 more per month than it outlays.
I made a mistake. For the latest raise, ENS actually pays out about $0.075 more per month than it will take in from the the shares of ENB that it purchased with the proceeds.
That means ENS needs ENB to increase in value by about $0.04 per month or $0.50 over the next year to cover the decrease in the NAV
The consensus target price among analysts for ENB is $55. That represents $0.52 per month or 13x what ENS requires.
Nothing is guaranteed but the fact that RBC et al were able to put away $63mm overnight at $15 per share gives me some comfort.