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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi team, this may be a fundamental question, but why when a company announces a share buyback, which you would think be a good thing does the stock get slammed. This seems to have just happened to JE Just Energy, even after a dividend cut. Won't a reduction in shares outstanding provided the existing shareholder with a bit of stability in the share price?
Read Answer Asked by Ray on February 14, 2013
Q: Hi team, I have held Just Energy JE for the share price ride up and then back down again and have been dripping my dividends monthly. But now I am beginning to wonder if I should cancel my drip which is getting fairly large and just bank the dividends. Most TV experts seem to hate this company. However JE seem to keep growing their customer base both here and in the US. Your thoughts would be appreciated. No hurry for answer if you are short staffed. Thanks.
Read Answer Asked by Ray on January 29, 2013
Q: Wondering about JE (Just Energy) vs KWH.UN (Crius Energy Trust). KWH was a recent IPO at $10. Now trading at $9.15 - 10.8% yield.

Some are recommending selling JE because what they call distorted financial reporting and a current payout ratio of over 150%. The recent CPPIB investment seemed like a vote of confidence, but will this mean that they could force JE to reduce its dividend and would you agree that there’s a financial reporting issue?

Do you think one looks better than the other? Similar business.

Thanks
Read Answer Asked by Dean on December 17, 2012
Q: Hi Peter & 5i: The market seems to be reacting very favourably to Just Energy's (JE) debenture financing announcement today. How do you think the financing effects JE's risk profile in the medium term? Is the size significant or a drop in the bucket? At 9.50% the coupon sounds high, but I don't know how burdensome the debt obligations were that they may be retiring with the new money. It is still 300 basis points below the common equity yield. Is there any significance to the identity of the lender? How, if at all, would this development impact your present view on JE? Thanks!
Read Answer Asked by Lance on December 12, 2012