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 ENSPF


Primary Symbol: T.ENS Alternate Symbol(s):  T.ENS.PR.A

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 Experiencedon Dec 10, 2023 8:16pm
140 Views
Post# 35777181

RE:RE:RE:RE:How to calculate the premium or discount on ENS or any Split

RE:RE:RE:RE:How to calculate the premium or discount on ENS or any SplitPuma....

People who buy the commons of split shares are intoxicated with the current yield.  When the NAV for the commons approaches the $5 mark which for most splits is the point where the payout is in question, most people then dump their shares and the SP falls significantly.

None of this has anything to do with previous placements.  Conversely, most managers of splits and in the case of ENS, Middelfield is a prime example, when the premium to NAV for the commons approaches 20%, the math works for them to do an overnight private placement at a discount to that day's closing SP.  They do this so there are more shares outstanding and they get more management fees.

That said, when the NAV for the commons approaches the $5 mark, you need to look at the underpying companies that the split is tracking and make a judgement as to whether their SP will recover quickly.  If you think they will and you buy and you are right then you can capture both a decent capital gain and some high yield dividends for a while.  Conversely if you are wrong it is a bad investment choice
<< Previous
Bullboard Posts
Next >>