# Enbridge Income Fund - New Issue



## teksammy (Oct 21, 2015)

Hey Guys,

Long time reader.. first time posting here..

Just got a notification that ENF has a new issue for $28.25. Since yesterday the price is already down more than 4 percent to $28.45.

I am new to investing and was thinking if it worth getting some of these in my TFSA account. I have some XIU there and bought some Hydro one at $23.40 last week. 

I understand some differences between ENF and ENB through other threads on this forum, but its always good to get opinion from experts on this forum.

So I had a few questions...

1) Is it good to buy ENF? or just buy ENB ? I feel Enb is already very high at this point.

2) Like hyrdo ones last issue the price per share on that day was well below the issue price. So do you think it is good to go through the issue or buy directly on the day of issue. 

Sorry if I may have been a bit confusing. 

Thanks


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## gibor365 (Apr 1, 2011)

imho, If you want income ENF is a good holding.... they constantly increase dividends , have excellent yield and good fundamentals...

Was busy and missed ENF todays low, but placed limit buy later


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## 1980z28 (Mar 4, 2010)

pick up 2000 at 28.50


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## gibor365 (Apr 1, 2011)

1980z28 said:


> pick up 2000 at 28.50


This is approximately where I have my limit buy


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## 1980z28 (Mar 4, 2010)

I have a buy of 3000 at 28.00

Or I will buy more fts,csh.un.wait until tomorrow all leveraged money


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## jerryhung (Mar 28, 2011)

ENF issue is closed (at least on TDDI), got total of 500 shares (asked 1000+200+400, got 300+100+100)

Too bad it didn't POP like ENB did (hard to imagine they issued at $40.xx, and now it's almost $52)
but will fund the allocation with HELOC money (S.M.)

At least market price is still > $28.25...unlike H (still below the $23.65 offer)


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## doctrine (Sep 30, 2011)

ENF is a great buy, but there is almost no way it would jump like ENB. You can expect ENF to issue a similar amount of shares every year, it's only been 6 months since they issued $700M. So there will be plenty of supply for the next 2-3 years. It could hit $40 but is more likely to be in the $26-34 range, depending on market conditions, interest rates and how defensive stocks are perceived. I have some shares, going to slowly accumulate as part of my utility/pipeline holdings (also hold TRP).


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## gibor365 (Apr 1, 2011)

> ENF is a great buy, but there is almost no way it would jump like ENB.


 With nice dividend raises , I'm happy holder of ENF , cheaper price - more shares I DRIP


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## teksammy (Oct 21, 2015)

gibor said:


> imho, If you want income ENF is a good holding.... they constantly increase dividends , have excellent yield and good fundamentals...
> 
> Was busy and missed ENF todays low, but placed limit buy later


Thanks... I too missed the issue and the low yesterday morning..  

Since I have more insight now, hopefully I can grab some during the next issue.


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## OptsyEagle (Nov 29, 2009)

You usually do not have time to post a message and wait for responses, when trying to get a piece of a new issue. If the issue is priced well it should literally fly off the shelf in an hour, maybe less.


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## gibor365 (Apr 1, 2011)

Enbridge Income Fund Holdings announces $0.5 bln secondary offering of common shares by Enbridge
BRIEF-Enbridge Income Fund Holdings announces $0.5 bln secondary offering of common shares by Enbridge
March 27 (Reuters) - Enbridge Income Fund Holdings Inc
* Enbridge Income Fund Holdings Inc. announces $0.5 billion secondary offering of common shares by Enbridge Inc.
* Enbridge Income Fund Holdings Inc - Agreed to sell on a bought deal basis, 15.1 million EIFH common shares owned by co at price of $33.15 per common share
* Enbridge Income Fund Holdings Inc - Closing of secondary offering is expected to occur on or about April 18


OptsyEagle said:


> You usually do not have time to post a message and wait for responses, when trying to get a piece of a new issue. If the issue is priced well it should literally fly off the shelf in an hour, maybe less.


I'd like to add ENF , but still cannot see this offering in CIBC IE New Issues .... wondering if other discount brokerages have it already?

P.S. Oh now I can see ... it's already sold out  , yes, in less then an hour


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## AltaRed (Jun 8, 2009)

A number of brokerages had this secondary offering in their portfolio. I understand this offering is actually ENF shares that ENB holds, i.e. they are not an incremental ENF share offering.

ENB has a 'good game' (gig) going here. Shed assets to ENF via taking shares in ENF at price X over time and then sell their held ENF shares into the market at higher multiples/valuations (X+) than a secondary offering would have gotten in ENB itself. Income seekers have driven up the share price of ENF considerably.


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## Argonaut (Dec 7, 2010)

Not happy that this happened on an up-day when everything especially energy stocks are in the green. Would have preferred them to announce this offering a week ago.


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## doctrine (Sep 30, 2011)

ENF is a strong buy for me in the $33 range. Yield > 6% and some of the best pipeline assets out there. ENB probably has a few more chunks to sell but it's not "new" shares, just shares being pumped out from the fund group that ENB already owns.


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## bleagues (Sep 24, 2013)

The yield on ENF is now approaching 7% and at 52w lows.

I haven't seen any news out on this fund. Is it the industry? 

Comments?


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## AltaRed (Jun 8, 2009)

Maybe the industry (others like TRP and IPL), and maybe a return to reasonable valuations for essentially a 'mature' stock, recognizing it is not a growth stock and interest rate on debt is likely to see upward pressure. A P/E of 14 and P/B of 1.6 does not feel out of line (to me) for this kind of stock. There may be some concern about whether and how ENB may dump some of the Spectra assets into this entity?


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## Numbersman61 (Jan 26, 2015)

bleagues said:


> The yield on ENF is now approaching 7% and at 52w lows.
> 
> I haven't seen any news out on this fund. Is it the industry?
> 
> Comments?


On October 19th, Moody’s had downgraded the senior unsecured debt of EIF
https://www.moodys.com/research/Moo...d-to-Baa3-Outlook-Remains-Negative--PR_373978


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## AltaRed (Jun 8, 2009)

Numbersman61 said:


> On October 19th, Moody’s had downgraded the senior unsecured debt of EIF
> https://www.moodys.com/research/Moo...d-to-Baa3-Outlook-Remains-Negative--PR_373978


I had overlooked that announcement which likely has caused the most recent near term drop in share price. At one time, ENB used to be more conservative in its debt burden. They need to work off some of that (as the Moody newswire says) once Line 3 replacement goes into service. That said, it is not a given yet LR3 will actually happen given recent Minnesota PUC obstacles, though ENB has started construction.


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## doctrine (Sep 30, 2011)

Risk has increased because of uncertainty around Line 3. However, its hard to see it not proceeding. If it does proceed, except ENF to do quite well.


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