Post by
Obscure1 on Feb 01, 2024 10:57am
ENS is getting pricey
Yesterday was the Record date for ENS. The significance is that the NAV for ENS drops $0.13 on the Record date. Using the Record date makes sense as that is the date when everything becomes officlal.
ENS shareholders ignore the math because nobody cares. As such, the Premium to the NAV typically jumps.
Yesterday was a particularly bad day for the NAV as ENB itself was down $0.45 which means the NAV for ENS should have been down ($0.45 * 0.44) + $0.13 = $0.33. I just checked the daily update for the NAV and yup, it was down $0.33.
While the NAV was down $0.33, the ENS share price was only down $0.05 >>>> up goes the Premium.
The Premium at the close yesterday was 13.7% which is moving towards the danger zone for a potential Raise. We are not there yet, but it is time to pay attention.
For perspective, the Premium on the Record at the end of November was 15.59% and Middlefield hit us with a Raise as soon as the calendar turned over to December. It is interesting (for me at least) to note that a few days before the previous Raise, the Premium was almost 18% but it was still in the "no Raise" period prior to the end of the month.
It still pissses me off that Middlefield changed the way they keep score last time around. I had brought up the possibility to them in the past of doing a Raise despite the Prefs trading under $10 as the Unit NAV should be the key factor as to whether the costs of a Raise could be covered by a Raise of the entire Unit.
A poster here talked about the decisive factor is the Premium to the Unit NAV in the past which I regret to say that I didn't respond to as I was busy at the time. I should look into that now but I'm busy and will try to get to it when I have time.
Bottom line >>>> I would NOT be buying ENS at these prices. If the Premium to the NAV creeps up, it probably makes sense to hit the sidelines. BTW, there are going to be some smart traders who will not be liking what I'm writing here as it will take away an opportunity for them. However, they can chill as very few ENS investors care about such things.