Looming dividend cut hovers over Just Energy, article says

|About: Just Energy Group, Inc. (JE)|By:, SA News Editor

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.