Larry Berman CFA, CMT, CTAEnbridge Income Fund HoldingsENF.TOBUYApr 25, 2016

Is being rolled up by the parent Enbridge. Now they have tried to simplify their corporate structure. If you hold this, you will either get Enbridge shares or could elect to get cash. Simplifying the structure should make investors more comfortable.

(A Top Pick December 11/17 - Up 8%.) 15% up including the dividend. Given the shortage of capacity the demand for its assets are very strong. It’s going to be consolidated with the main company and this is going to disappear, and you will get a share of Enbridge (ENB).

ENB taking over ENF: Sell one, buy one or both buy? The reflationary sectors will do well in the next leg of this cycle, but the pipelines will not. Instead look at U.S. financials. Hold onto ENB, maybe make a move on the fund, ENF. Buy stocks/sectors that will benefit from rising rates.

Enbridge wants to buy ENF to simplify their corporate structure. In the States, Enbridge offered a small premium, while in Canada, they offered a premium. He suspects the directors of ENF-T are waiting for a higher premium (or that's what he would do). Pays a higher yield than Enbridge Inc. but lacks the dividend growth potential.

A lot of the yield stocks have had a tough year, including this one, due to rising interest rates. He doesn't buy that. Interest rates haven't risen that much and these yields are still a lot higher than bonds.

Should I roll my ENF-T into ENB-T? The acquisition by Enbridge Inc makes good sense as it will simplify the structure of the company. With Enbridge committing to increase dividend in the years ahead, he sees no reason why you would not roll this over into ENB-T shares tax free.

He liked the fund but now you might as well go and get the mother company ENB-T because that's where it is going.

He doesn’t know what will happen to this stock after it is rolled back into Enbridge and so he is neutral on it.

The parent is offering to buy the Fund at a 10% premium. He would continue to hold this. The share conversion is unclear to him, but he would continue to stay with this company.