RE:RE:RE:RE:RE:Putting the discount to the NAV into perspectiveGanyman....thanks for your reply and clarification regarding your question
As I have mentioned many times here, I wouldn't buy a split share stock unless it was trading at or beelow NAV and so in that regard ENS meets that criteria. As well there is lots of safety in terms of things having tyo go very bad for ENB in order for it not pay out a dividend.
So what is holding it back and why have I still not taken a full position?
There are a couple of fundamental reasons.....
1......ENS along with any split share is a levered investment compared to the underlying holdings and so if anything goes bad the SP will suffer more severly due to the leverage. There are many people, including myself who see risks associated with the current market valuations. So those who share this sentiment are unlikely to bid up the price of a levered investment in favour of safer names to hold until the valuations come into comfort zone for that person's risk appetite.
2....many pragmatic investors such as myself, continually look our current portfolio and especially our cash holding and compare the total expected return to the universe of possible investments to determine where to get the best risk adjusted return. So if many people think that they can a better risk adjusted return (taking into account Point 1) they will put their money elsewhere as opposed to bidding up the price of ENS.
In my case I must admit I am straddling the fence in that I own ENS but not a full position and have put money to work elsewhere in the meantime. Given the price action that you refer to, my conclusion is that there are many others with the same opinion as me.