RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:What I have learned from ENB mgmt over the yearsroxy...I am sure that that has something to do with it but it is still puzzling to me as why we now have 6-8% discounts on many splits including ENS. Seems like an overreaction to me - one extreme to another. Common sense logic and a bit of math would suggest that most splits should trade near their NAVs and most at a small premium to NAV.
In the case of ENS (unlike most splits) we have a direct link to single holding (ENB) and Middlefield publishes the NAV everyday unlike other split share managers. Short of a market meltdown, IMO ENB is mispriced to the downside and has recently had its target price upped by The Street AND you have leverage to the upside and yet it is trading at a discount.
When things like this happened, over the years, I felt/assumed that perhaps somebody on The Street knows something that it is not common knowledge. When I worked there, I know from personal experience that this was often the case (a wink and a nod here and there). But in the case of ENS (and other splits for that matter), the trades are primarily driven by retail trade as opposed to being institutional so it is unlikely that someone (as arrogant as it sounds) knows something I don't and is affecting the trading and pricing.