Shares of Canadian electric and gas utility Just Energy Group (NYSE:JE) were hopping today on news that the company has just announced a strategic review of its business -- often corporate-speak for "trying to sell the company."
Just Energy's board of directors has named a Strategic Initiatives Committee and said it will "evaluate strategic alternatives available to the Company" aiming to unlock shareholder value.
With Just Energy shares mostly flat (and actually down a few percentage points) over the past year, the prospect of some "unlocking" is music to the ears of investors, who are swooping in to scoop up shares. They drove up Just Energy stock, which passed 12.2% in gains as of 2:40 p.m. EDT on Thursday.
But there are caveats. Management said, "The Company has not established a definitive timeline to complete the Strategic Review" -- much less any timeline for selling the company and reaping any sales premium from a buyer.
Indeed, no sale may ever result, because "no decisions related to any strategic alternative have been reached at this time, and there is no assurance that a transaction will result from the Strategic Review," the company said.
Failing a sale, today's gains could quickly evaporate. But they're here today, and for anyone less than confident that a sale will take place, but who managed to buy the stock when it was cheaper, they offer a nice opportunity to exit with a quick profit.