RE:Added 5,000 shares this morningAnother great post Obscure...
While I agree with most of what you say and I do own ENS but as an underweight as opposed to your overweight position, let me offer a slightly different perspective based on how I invest.
Everytime I make an investment decision, I look at whether that decision is the best one I can make when looking at the universe of stocks I can buy or sell. I also make these decisions based on my macro base case as to what I think is going to happen to important indicators such as interest rates and economic activity.
As an example, last Fall I sold my ENS and bought ENB preferred shares and decided to wait a while before buying back into ENS. So what has happened since then? Well the preferreds I bought had a coupon rate of 9% and since last Fall they are up 6.6%. ENS, although it has a much higher coupon rate of 14% has declined in value about 8% since then. So to be mesmerized by the ENS coupon and not considering the total return clearly didn't yield the best total return over this time period.
At the time that ENB announced the acquistion, I posted that while I considered the deal to be a great move by ENB, I was concerned that ENB was taking on a lot of short term debt that needed to be dealt with before the deal closed and that ENB was counting on much lower rates at that time. This assumption, while sensible at that time (the Fed itself was predicting 3 rate cuts this year) has proven to be wrong as it is now doubtful that the Fed is going to have even one rate cut this year. This change weighs heavily on ENB and changes the math for its SP and by extension even more so that of ENS since it is a levered investment.
This is in part the thinking behind my decision to hold off taking a full position in ENS even though I really like ENS and will continue to hold other investments including the preferred shares I mentioned above since I believe that they will still provide a better risk adjusted total return for a while longer.