RE:RE:RE:RE:RE:RE:ENS goes from scary to a bargoon in two dayshi cttglvr
I was writing a long explanation out but TLDR came to mind.
My takes:
* Prefs are the domain of the Buy Side (funds) driven by interest rates while Commons are the domain of the Sell Side (investment dealers) driven by news events and emotions. They are two different worlds inconveniently blended together in Splits that really don't make sense. I suspect that the volume days are basically driven by balancing where somebody wants out of 1/2 of the split and they typically take a bit of beating doing so because the lack of liquidity.
* ENS doesn't have a ticket to the option game as there is virtually no liquidity. Any discussion about options requires tons of liquidity and a working knowledge of the how's and why's of short positioning. Both subjects are driven by timing and balancing.
* In a nutshell, ENS is just a tiny derivative of ENB which itself rarely even makes the top 10 short positions in Canada (shortdata.ca). ENS and all Splits were created to generate advisory and management fees. Nobody cares about them other than the fund managers who create them and the brokers that scalp huge commissions selling them.
What I like the most about Splits is that nobody cares about them. The lack of care and attention means periodic inefficiencies are created. Anyone paying attention can cherry pick the blips. If you pick the right Splits (like ENS imo), you don't even have to pay attention to haul away oversized returns for the risk. Even if you make a wrong call, you just have to be patient. I'm more of the buy and hold variety for the easy to sleep returns, but the blips do make it more fun.