Just Energy -16.5% as TD Securities downgrades

Just Energy (JE -16.5%) plunges after TD Securities downgrades shares to Reduce from Buy with a C$5 price target, down from C$10, and warns the company may cut its dividend.

TD says it trimmed its target multiple by 1.5x to a still healthy 7.25x to reflect slower growth rates and execution risk; the firm's lower valuation also comes from a reduced base EBITDA forecast because of deteriorating net customer adds, margins and growth rates.

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Comments (4)
  • Eric Rasbold
    , contributor
    Comments (180) | Send Message
    Woah....TD really called it on that one-a full 40 minutes before the market closed today AFTER a 25% hit. Wouldn't want to look like some Johnny Come Latelys!


    These guys are "expert" for sure!
    16 May 2014, 04:14 PM Reply Like
  • King Rat
    , contributor
    Comments (1902) | Send Message
    A day or two late? Or perhaps a couple of months late. Dividend reduction and abruptly exiting CEO should have been clue enough that things were not kosher.


    Even the reduced dividend is 108% payout ratio. Cutting that under 50% would be nicer. A 2-3¢ dividend at 36-54% payout would still yield 4-6% for investors but leave room to expand, reduce debt, or shore up cash.


    Right now JE is a good company at a great price. I'd feel safer if they made positive changes to be great, even at a higher price.
    16 May 2014, 05:43 PM Reply Like
  • drking
    , contributor
    Comments (268) | Send Message
    these guys are really good after it went down $2.00 + a share they come out & tell the world it's going to go down. I am glad T D securities is not managing my IRA JE is not a buy & hold stock I sold on tue. 5-13 The company is OK it's just the analysts don't like it for some reason If the quarterly report wavers any small amount they run it down Read some of the S A articles by Fredrik Arnold You can make a lot of money off of these Mopay dogs but it's no free ride
    16 May 2014, 07:27 PM Reply Like
  • Milton Bishop
    , contributor
    Comments (8) | Send Message
    Worked for 3 major gas pipeline companies, for 35+ years. Was involved in supply, marketing, accounting, operations, regulatory---the works, liason between top management and field operators, electric power companies (customers) and many other pipeline companies vie exchange and sales agreements----managed 5 district offices in gas operations.
    Last company that I was with had to start from scratch since district deals overlapped and one district did not know their effect on other districts, my job was to centralize and manage all into one point.
    21 May 2014, 01:08 PM Reply Like
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