RE:RE:What is going on?How did you come up with 30% loss? If your average cost is in high 29 and current share price is $26.5 then shouldn’t your loss should be around 10% ?
Pipelines and utilities stocks in general are under pressure because of fear of 3-4 rate hikes in 2018 and beyond . With increase in rates, the yields on bonds / savings go up and this makes utility stocks less attractive. In addition, utilities and pipelines are capital intensive businesses and increase in rates would increase their operating expenses to meet debt obligations , which would reduce income and cash flow.
Enbridge has over $65B in debt and there are concerns regarding its ability to manage debt and to finance capital spending. Because of all these , institutional investors are on selling spree, putting downward pressure in the price. ENF is undervalued in my opinion and has price to book only 0.90, meaning you are buying assets worth $1 for $0.90 .When the dust settles, it is likely to trade higher. While you wait, you enjoy the monthly payout. Good luck!!
RMXStoleME wrote: BUMP
SAME HERE. I was unavailable for the last month or so and I came back to this?
Can someone tell me what the heck happend?
Stil in the high 29's per share cost. why the 30% loss all the sudden?
I was betting enbridge was a large enough company that would not go belly up.