E Split Corp ENSPF

Putting the discount to the NAV into perspective

[Obscure1]

Now that ENB has gone ex-divi and the pros have had time to squeeze as many shares out of weak hands, it is time to look at ENS vs ENB as an investment

As the time of writing, ENB is trading at $52.96.

ENS is trading at $11.89 which is a 7.24% discount to its NAV. 

Buying ENS at the current price is equivalent to buying ENB at  $52.96 x 0.9276 = $49.12

Would you buy ENB at $49.12, which is $3.84 below the market price?

I have always maintained that ENS should trade at a reasonable (5% at least) Premium to its NAV as long as the future of ENB looks positive.   

i would be using this opportunity to add ENS if I didn't already have a full position and then some.

[Ganyman61]

Love your number crunching. Hang tight hopefully the share price inefficiencies will get corrected. Have a great weekend. 

[Jagger7]

40,000 shares, pry them from me over my cold dead body 

[Ganyman61]

Something or someone is holding the share price back I wonder if Middlefield knows anything?

[Experienced]

Ganyman...good question From my days working on the Street, I can say without any doubt that Middlefield knows more than the average investor through "winks and nods". I did the same back in the day.  That said, the real question is whether that knowledge in any way affects the market as I think that was the implication to your question.  The answer to that question IMO is a

[Ganyman61]

Hey Experienced thanks for your input very helpful but I was referring to what holding ENS back remember that it's trading well below it's NAV not even any premium. It should be at least NAV.

[Experienced]

Ganyman....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

[Beuler]

All that writing, not a mention of any specifics regarding ens, it a good time to buy.

[Ganyman61]

I understand that a stock like ENS is leveraged to one stock ENB that if things go bad for Enbridge it will go bad for ENS but Enbridge has gone from the mid 40$ to 53$ and ENS has been basically stuck in the mud and from what I  understand that if interest rates go down it will only benefit Enbridge more and hence the share will go up. It's time ENS plays some catch up to least NAV. 

[Experienced]

Ganyman....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

[Ganyman61]

I enjoy these chats. Point taken. 

[Experienced]

Thanks...yep great discussion....unusual for Stockhouse...let's continue!!