Middlefield's next play The ENS.PR.A pref shares are trading at $10.70 yielding 6.5%.
ENS is trading at $11.89 yielding 13.1%
Does that seem right to you? It doesn't seem right to me either.
In the past, when Middlefield has done Raises, they would discount the ENS portion by about 2.5% and discount the ENS.PR.A portioless than 1.0%
ENS followers in the past have never put any thought into how Middlefield can weaponize the premium on the Prefs. However, the last Raise was only made possible because of the premium on the Prefs.
At this time, the Premium on the Prefs is ridiculous imo. Trading at $10.70 while the NAV is $10.10 leaves lots of room for Middlefield to play with. Today, Middlefiled could discount the Prefs by 6% in a Raise. They wouldn't have to, but they could.
What does all this mean?
At the moment, there is no threat of a Raise. However, the moment ENB takes a dip where ENS doesn't follow it down, OR if the street ever wakes up to the inefficiency of the market price of ENS, the gap to the trigger point of a Raise can get covered much faster than ENS shareholders think.
I will continue to keep an eye on the math as getting out ahead of a Raise and then buying back in after the drop can make for a good year for me at this stage of my life.