Looming dividend cut hovers over Just Energy, article says


Just Energy (JE) has overstretched its balance sheet and is struggling to survive amid a tough competition for its energy products, waning organic growth and declining margins, Ben Axler writes.

JE is incapable of producing sufficient cash flow to cover its reduced C$122M/year dividend burden, rendering its dividend policy unsustainable, according to Axler, who believes JE shares have an intrinsic value of $4.00/share regardless of any cut.

Shares, down nearly 5% earlier, have clawed back to breakeven.

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Comments (1)
  • johnnybeegoode
    , contributor
    Comments (11) | Send Message
     
    What do you say now Ben? Listening.
    14 Feb 2014, 12:03 PM Reply Like
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