RE:RE:RE:The limited upside potential of the PrefsThanks Obscure...
Yes it's great to have "double insurance" on the ENB prefs but frankly, I consider that overinsurance since I very much doubt that ENB would be in any financial difficulty in the future or at least for the remaining years that I am able to walk the earth (lol). My interest in buying them was mainly as an oppoprtunity to get a high risk adjusted return and also as part of my strategy to lower the overall risk in my portfolio (not that it was high to begin with...lol).
As mentioned earlier, I also saw an opportunity to potentially see some price appreciation while ENB has a cloud over it regarding the financing of its acquisition of the US utillities. So far this has worked out and at some point over the next year I will look for an opportunistic switch from the prefs to the commons of either ENB or ENS. Should we see a market downturn, I suspect that this will provide such an opportunity. In the meantime, I have hedged my bets with an underweight position in ENS which sadly is currently underwater (but oh well).
In terms of splits, I do have small positions in a couple of others and also hold some of their prefs as well. I must admit that holding splits is a small percentage of my portfolio since, as we discussed before, I see them as a lot of work to keep track of the premiums to NAV and potential raises by the fund managers (especially in the summer when I am out riding on my bike for hours and as such have better things IMO to spend my time doing).