Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

E Split Corp T.ENS

Alternate Symbol(s):  T.ENS.PR.A | ENSRF

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

Comment by Obscure1on Jan 02, 2024 7:08pm
70 Views
Post# 35807916

RE:RE:Happy 2024

RE:RE:Happy 2024Puma:

It appears that it took Middlefield about a week to fully deploy the funds from the Raise into more ENB shares.  I can't be certain of exactly how much was invested and how fast, but the daily NAV reports  gives us a clue.  

After the Raise but before the money was deployed, the "factor" applied to the daily change in the ENB share dropped from 0.44 to 0.37 and then made made its way back up to 0.44 within a week or so. 

I posted earlier today that the Premium to the NAV had dropped to 8.09% at the time of writing.  As the day continued, the ENB share price kept rising and finished the day up $0.66.  Meanwhile, the share price of ENS only rose $0.01.  As a consequence, the Premium to the NAV ended up at 7.41%.  

I have posted a number of times about why I think that the ENS share price should trade at a decent Premium to the NAV.  Currently, we are witnessing a reduction of the Premium.  Whenever a trend changes, I always ask my self WHY?

I can think of 3 possible reasons:

1) As the price of ENS goes up, the leverage starts to decline why means the Premium to the NAV will naturally reduce.  I don't think this factor is playing much of a role as the ENS share price hasn't much.  On the day that the Raise was announced, ENB closed at $47.61 while ENS closed at $12.81.  

2) Investors with deeper pockets than us think that the ENB share price is heading lower which is making buyers shy away from ENS because the 2.27x leverage factor can be quite painful when the price of ENB shares drop.  I don't think this is the case either as nobody cares about Splits because they are extremely small cap and illiquid. 

3) ENS investors are asleep at the wheel.  This seems like the most likely factor as ENS shareholders are pretty much always asleep at the wheel.  
<< Previous
Bullboard Posts
Next >>