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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 Aug 13, 2024 4:19pm
87 Views
Post# 36177276

RE:Has ENS been losing ENB shares due to option exercise

RE:Has ENS been losing ENB shares due to option exerciseObscure...assuming you mean an 8% discount not premium...

As for your other points, frankly, IMO, you are overthinking all this.  The impression that I have from reading the Middlefield literature is that covered options are small part of their strategy.  When you combine this with the fact that on average only about 7% of all call options are actually exercised and for Middlefield their call options might not even be assigned in that 7%.  So when you put all this together, the options part of this is most likely insignificant. Plus, if Middlefield was selling call options in a rising market they would most likely be selling out of the money options and get a capital gain plus the revenue from the sale if they were actually exercised.

As for strategy in my case, I have mentioned before that I don't have a full position.  I like the fact that it is trading at a discount to NAV for the reasons I outlined here many times.  For me, a great result would be for the SP of ENB go down x dividend and by the historical way (ie more than the dividend) and the SP of ENS follows suit cause people don't really understand how things work and then I pounce.  If it doesn't happen then oh well and I will bide my time and look at other targets.
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