Bullboard - Stock Discussion Forum E Split Corp T.ENS

Alternate Symbol(s): T.ENS.P.A | ENSRF

The objective of the Class A shares is to provide holders with non-cumulative monthly cash distributions and the opportunity for capital appreciation through exposure to the portfolio. And The investment objectives for the preferred shares is to provide holders with fixed cumulative preferential quarterly cash distributions and return the original issue price of 10.00 Dollars to holders upon... see more

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TSX:ENS - Post Discussion

E Split Corp > Traded at a discount to the NAV before recovering

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Post by Obscure1 on May 02, 2024 3:49pm

Traded at a discount to the NAV before recovering

I filled up so that have now put my full position back on.

Good move or not? Who knows in the short run, but buying ENS is really just buying ENB with leverage and a kick asss yield.

I wouldn't be surprised to see ENB move up prior to going ex-divi on May 15th as that is its normal pattern. When ENB goes ex-divi, the price of ENB almost always drops more than the divi. Recently, ENB has dropped about 1.5x the divi at the bottom.

If ENB drops 1.5x the divi, or about $1.30, the the ENS NAV would drop by 44% or $0.57 if you add on another drop of $0.13 when ENS goes ex-divi itself on the Record Date at then end of the month, the total drop in the NAV ends up being $0.70 all else being equa. A drop of $0.70 in the NAV pushes up the Premium by over 6% all else being equal.

If the Premium to the ENS NAV is already high before ENB goes ex-divi, ENS shareholders should pay attention for the possibility of a Raise (it happened the last two quarters).

As long as the Premium to the ENS NAV doesn't shoot up prior to ENB going ex-divi, we should be ok.