Post by
Obscure1 on Apr 29, 2024 1:23pm
bookkeeping
Stupid stuff that doesn't matter:
* the fact that Middlefield hasn't invested a chunk of the Raise into ENS helped the NAV on Friday as the NAV didn't drop as much as it would have if Middlefield had invested fully
* the NAV for today (Monday) doesn't reflect the divi payment - it will be reflected tomorrow which is the Record Date >>> therefore, the Premium to the NAV for today (which Middlefield will report tomorrow morning) will be artificially low but will be corrected on Tuesday
Something that might be worth reading.....or maybe not ... it is just my thought process:
The FED will be announcing their latest decision on interest rates on Wednesday at 2pm. Shortly afterward, JPow will stand up and tell us why they decided to do what they did (virtually 100% chance that there will be no change in r[ates on Wednesday). Where it gets interesting is what the FED expects going forward and that is when the market typically crashes every time JPow speaks.
There is always a disconnect between what the FED sees and what people actually experience. That is due to the measures the FED uses and the fact that they are working on "old" data that may or may not reflect what the man on the street is experiencing.
Here are some factors that I'm thinking about when it comes to interest rates:
* election year >>> political pressure will be put on the FED to lower rates as lower rates = happy voters
* there is real pain for many as high rates hurt everyone which means pressure is on the central banks to lower rats >>> a notable exception is corporations that just use it as an excuse (ex. the place where i get my hair cut has increased the price of a basic cut by $10 since 2020 despite the fact their rent hasn't changed and their utilities have't changed much...meanwhile their labour cost has gone up by $2 per hour.......given 3 cuts per hour by each employee, the store is charging $30 more and paying out $2....i can list lots of other examples) >>> I strongly support capitalism but the steady corporate gauging is crippling our society just as much as our friend in Ottawa
* falling rates will help ENB's profitability and reduce risk a bit...I expect that the natgas distribution deals will as well >>> better returns will hopefully allow ENB to increase the dividend in Nov by 4% instead of 3%....that might not seem like much but it will make a difference which will be magnified for ENS
Bottom line is that I think ENS is a good buy at this time....after saying that, the market has a way of embarassing anyone that has an opinion
Comment by
Experienced on Apr 29, 2024 7:58pm
Obscure... Thinking you need to find another place to get your hair cut...lol The Thai lady that cuts my hair charges me $28 and that is up from $24 which I paid 10 years ago. In terms of your analysis, I must admit that I am less confident than you are about rate cuts although I would welcome them as my ENB preferred shares would benefit from them.