E Split Corp T.ENS

ENB is breaking out

[Obscure1]

ENB is trading at $55.10 as I write this.  The share price was at $54.44 before it went ex-divi.

With the BoC cooperating and the dilution accounted for and the interest costs now being covered by the cash flow of the 2 primary natgas acquisitions, one can expect tailwinds in the future.

Once the election is out of the way, the market should have a clear upwards bias imo.  There are alwaysgoing to be lots of micro economic topics to keep the daily commentary going, but lower rates are like a rising tide. 

ENB will be announcing another divi raise in November.  If the company can ease off the brakes just a bit, I think ENB will see $60 per share. 

What does that mean for ENS? 

If the market thinks ENB is going higher, surely the current discount the NAV should disappear.  That would add a buck to the price of ENS.  If ENB hits $60, the price of ENS should go up another $2.  Those that added to their ENS position in the $10.50 to $11.50 range are going to be happy campers.

[Experienced]

Obscure.... I do share your optimism about the long run prospects for ENB and hence the implications for ENS. That said, I do want to caution that many people overestimate the impact of central banks lowering interest rates.  One of the reasons, especially for large caps like ENB is that a great deal of their borrowings are long term bonds and preferred shares and so lowering interest rates

[Obscure1]

Experienced:  What you said is true.  What you didn't talk about is the ever changed flow of investment funds towards the "best" perceived value on a risk/reward spectrum at any given time.   The stock market is actually a market of stocks, much like a grocery store for securities.  Money moves towards the best expected outcome with what seems to be ever

[Experienced]

Obscure... In my previous post I was reacting to your comment about interest rates which I felt gave a bit more zealous view to those without the background that both of us have in our "previous lives" than was warranted.  In terms of risk adjusted returns - yes, but that does not necessarily say that ENB is best investment based solely on a reduction of interest rates in a market