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.