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E Split Corp T.ENS

Alternate Symbol(s):  ENSPF | 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

Post by Obscure1on Feb 28, 2024 1:05pm
332 Views
Post# 35904266

Risk of a Raise this week is low

Risk of a Raise this week is low For the last two quarters, when ENB went ex-divi (Aug 14th & Nove 14th) Middlefield hit us with a Raise at the start of the following month.  

I don't see that happening this time around.  The Premium to the NAV is 10% at the time of writing which is well below the Premium when the last Raise was done.   

This time around, the ENB share price quickly recoverd after going ex-divi while the ENS price lagged, resulting in a lower Premium. 

None of us can control the stock market.  What we can control is our behaviour as investors.  Like Experienced says, sell ENS when the Premium to the NAV approaches the mid-teens and buy it back when the Premium to the NAV hits the mid single digits. Either your selling will help deprive Middlefield of the opportunity to do a Raise, or some other investors push the price of ENS up too far and Middledfield does the Raise which gives you the opportunity to buy back in at a lower price. 

Really simple strading strategy.  On the other hand, I would rather buy ENS when the ENB share price dips unless the Premium to the NAV gets into the danger zone for a Raise. 
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