Just Energy JE.TO Results
What are the thoughts on this set of results?
Couple warning signs here. One is, they do not report net earnings in their press release. That's because it wouldn't look good, I'm certain. Their payout ratio is too high. $42M EBITDA, but $29M after taxes, yet still $44M in distributions. I don't have an issue with 100% payouts if they are from net earnings, but they're barely making 100% EBITDA, which means they're funding the distributions from debt and hoping they make it up on growth. They can probably sustain it for a while, but I wouldn't be interested based on the latest quarter.
I'm going to cut my losses on this one soon, it is up a little today. The dividends are okay and I'm almost at a point of breaking even with dividends and loss accounted for. When everything else I am buying is up 10-15% this is down 20% meh.
My sentiment exactly.
Originally Posted by jamesbe
up 6% today.
p.s tomorrow is the ex-div day.
JUST ENERGY GROUP INC. ANNOUNCES $105 MILLION INVESTMENT BY CPPIB CREDIT INVESTMENTS INC.
Just Energy Group Inc. has closed an investment with CPPIB Credit Investments Inc., a wholly owned subsidiary of Canada Pension Plan Investment Board (CPPIB). The investment is in the form of C$105 million of unsecured, five and a half year term notes with a 9.75% coupon (the "Notes"), issued pursuant to a trust indenture with Computershare Trust Company of Canada (the "Indenture").
Just Energy intends to use the net proceeds from the financing to reduce its drawings on its working capital line, fund future growth and for general corporate purposes. CIBC World Markets Inc. and National Bank Financial Inc. acted as agents on the transaction.
The key terms of the Notes are as follows:
Principal: C$105 million investment Coupon: 9.75% Pricing: Issued at par Ranking: Senior unsecured indebtedness Term: Five and a half years Prepayment: Make whole and change of control provisions as described in the Indenture Covenants: Certain customary covenants with respect to additional debt incurrence, dividends, asset sales and other usual covenants to be set forth in the Indenture
Rebecca MacDonald, Executive Chair of Just Energy, said: "We are pleased to have completed this financing with CPPIB, a leading global institutional investor. Their thorough professionalism made this a straightforward transaction during a time of volatile markets."
Last edited by lakota; 2012-12-12 at 02:05 PM.
I sold my holding this morning, I've had enough of watching my $$ go down the drain. I should have never bought it in the first place.