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Global X Active Preferred Share ETF T.HPR



TSX:HPR - Post by User

Comment by unclewebbon Jun 18, 2005 3:07pm
386 Views
Post# 9178757

RE: Price differential

RE: Price differentialYou make a point but I disagree with your math. Enterra closed this week at $28.51. The distributions per month are worth $0.20 CDN ( $0.16 US ). An investor can buy ENT at $28.51 and receive $0.40 to $0.60 in distributions or they can buy HPR at $2.46 which is equivalent to an ENT price of $23.43 ( $2.46 / 0.105 ) and receive no distributions while waiting for this deal to close. Seems like a no brainer to me. The present gap can not be explained by the difference in distributions. The peak driving season is just beginning, oil is at a 52 week high and heading higher ( Dec. futures over $60 ) and the price of natural gas is also very strong. Enterra showed their confidence in their business and the present market this week by raising their distribution. A significant collapse of Enterra between now and mid-August is not looking likely. It's far more likely that HPR will close the gap by moving up over the next two months. The only question is whether it will be $3.00 or if HPR will have to go even higher to catch up to ENT. HPR longs are about to be rewarded for their patience.
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