E Split Corp T.ENS

The limited upside potential of the Prefs

[Obscure1]

I have a lot of respect for Experienced's stock advice.  

Saying that, I have to disagree with his last post where he speaks about the growth potential of the Prefs after a 3-6 month period.  

When I look at the chart for the Prefs, I see that it is trading at the top of its range over the last 5 years. 

Interest rates were a lot lower prior to covid and it is going to take a long time (if ever) for rates to return to zero.  

The Prefs are more of a security play than a yield play imo.  Of couse interests will swing the share price around a bit, but if ENB goes back up to $55, the price of the Prefs will likely sell off if anything as investors will be looking at how the total return of ENS will outperform.

[Experienced]

Obscure....thanks for your response.. I assume you are talking about the ENB prefs. One thing you are forgettting when you say that they are trading at the top of their range for the last five years is that many of them and in particular the ones that I have bought don't have a fixed coupon.  The coupon is reset every five years based on a guaranteed premium to the current GOC bond rate

[Obscure1]

I was referring to the ENS Prefs.  By nature, Splits are a different animal because of the built-in termination overhang. The ENS Prefs are a good investment imo because of the incredible security offered by the preference over the commons which basically gives them "double insurance" against any possible demise in ENB Great grab on the high yield ENB Prefs.  Timing is

[Experienced]

Thanks Obscure... Yes it's great to have "double insurance" on the ENB prefs but frankly, I consider that overinsurance since I very much doubt that ENB would be in any financial difficulty in the future or at least for the remaining years that I am able to walk the earth (lol).  My interest in buying them was mainly as an oppoprtunity to get a high risk adjusted return and