Why Just Energy Group, Inc. Shares Surged

Is this meaningful or just another movement?

Feb 14, 2014 at 3:00PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Just Energy Group, Inc. (TSX:JE) (NYSE:JE) are nearly 10% higher on both American and Canadian exchanges today after the company reported strong earnings for its fiscal third quarter.

So what: Just Energy came through with $859 million in sales for the third quarter, producing profit from continuing operations of $177.5 million, or $0.96 per share. The top line grew 17% over the year-ago quarter, but EPS soared 243% over the year-ago quarter's result of just $0.28. The company added a net 50,000 customers after recording 345,000 total additions and installs for the quarter. Its customer base of 4.6 million is 7% higher year over year. Also promising was news that the company's dividend payout ratio on base funds from continuing operations fell to a sustainable 80% for the quarter as compared to the year-ago quarter's 126% payout ratio.

Now what: Just Energy presently boasts a dividend yield of more than 10% on both exchanges, and the improvement in its payout ratio is a good sign patient income investors. However, Just Energy's stock is now in the high end of a trading range that has been relatively stable for a year after suffering a halving of share prices since early 2012. It's not a cheap stock, but if this performance is indicative of Just Energy's potential, it could eventually head back to those highs. For the moment, it's a reasonably attractive income play.

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Alex Planes has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

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This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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