E Split Corp T.ENS

Middlefield's next play

[Obscure1]

The ENS.PR.A pref shares are trading at $10.70 yielding 6.5%.

ENS is trading at $11.89 yielding 13.1%

Does that seem right to you?  It doesn't seem right to me either.  

In the past, when Middlefield has done Raises, they would discount the ENS portion by about 2.5% and discount the ENS.PR.A portioless than 1.0% 

ENS followers in the past have never put any thought into how Middlefield can weaponize the premium on the Prefs.  However, the last Raise was only made possible because of the premium on the Prefs. 

At this time, the Premium on the Prefs is ridiculous imo.  Trading at $10.70 while the NAV is $10.10 leaves lots of room for Middlefield to play with.  Today, Middlefiled could discount the Prefs by 6% in a Raise.  They wouldn't have to, but they could.  

What does all this mean?

At the moment, there is no threat of a Raise.  However, the moment ENB takes a dip where ENS doesn't follow it down, OR if the street ever wakes up to the inefficiency of the market price of ENS, the gap to the trigger point of a Raise can get covered much faster than ENS shareholders think.  

I will continue to keep an eye on the math as getting out ahead of a Raise and then buying back in after the drop can make for a good year for me at this stage of my life.

[ANALOG GUY]

I dunno why we are trading so far under NAV but I'm tired of thinking about it Had some cash looking for a home, bot 10,000 shares at $11.88 whatever the future price is I will collect that 13% yield for years to come  As far as I can tell Middlefield has never missed an ENS dividend since inception  GLTA

[tinkvid]

It's very interesting how the supply has dried up on the ENS Prefs but I am not complaining one bit. When they do another raise I will be loading up again on the prefs. Brompton SPLT still adding to their holdings and now Quadra adding through PREF.

[cttglvr]

Hi Obscure1. I think I can explain the way the ENS preferreds are trading and why so far above par. Until July 2023 ENS preferreds were paying 13.125 cents per quarter or 5.3% annually. Most perpetual preferreds like POW, PWF EMA and more were yielding in the mid to high 6% range. September 2023 the ENS preferred payout was increased to 175 cents per quarter to yield 7%. Now all of my perpetual

[Ganyman61]

Interesting post about the preferreds. I always thought that someone or something was manipulating the stock price and your theory on Middlefield doesn't suprise me although and correct me if I'm wrong but wouldn't be better for Middlefield to let the commons trade above NAV so they can do a share raise?

[Experienced]

Ganyman....Agree that Middlefield would like a return to trading at a premium to NAV and a big enough premium to that they could do a raise and at the same not violate regulatory rules.  Frankly, I would cheering for that happen as I would then take profits and wait for the SP drop post an overnight offering to reload. That said and in line with an earlier post, Middlefield IMO isn't a

[roxy14]

were all hoping for the same take a look at middlefields other split.  RS with is trading round 8% above nav and has done numerous raises as well. As interest rates continue to drop our 13% divi should eventually come down

[Ganyman61]

Keep holding your shares tight don't give them away.  Let's slay those short seller's and drive the price up!

[Obscure1]

It is very unlikely. that anyone shorts ENS. I expect that brokerage houses are holding a high percentage of the shares so they could be borrowed, but ENS is illiquid and the carrying cost is high.