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E Split Corp T.ENS

Alternate Symbol(s):  ENSPF | 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 18, 2024 9:04am
105 Views
Post# 36184775

RE:RE:RE:RE:RE:RE:RE:Putting the discount to the NAV into perspective

RE:RE:RE:RE:RE:RE:RE:Putting the discount to the NAV into perspectiveGanyman....if you look at the latest run by ENB from mid June to now and compare it to ENS during the same period, ENB has indeed outperformed ENS but most of that can be explained by a reduction in the premium which was around 6% in mid June as I recall (Obscure would have the exact numbers for sure).

IMO you can blame Obscure for what has happened due to his tutorials on how to trade ENS and watch the premiums.....lol.  The silver lining is that if you think that the overall market isn't vulnerable to a downturn AND you can't find another investment that provides a higher risk adjusted total return then  buying ENS at a discount to NAV is a compelling buy and you should thank stupid investors for letting that happen.  In my case of I have invested in such alternatives while holding an underweight position in ENS and am continually monitoring the situation and will switch one way or the other (or move to cash) when the time is right IMO.

In terms of lower interest rates helping ENB, that is true but I have found over the years that investors seem to overrate this.  Why?  Because one has to look at the the debt structure of the company in question to determine how much of the debt is either variable or needs to be refinanced in the short term since the rest is unaffected by interest rate changes. The other consideration is how smart the CFO is....in the case of ENB they have a smart one.
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