Just Energy Reassures Investors

Stock investors are riding a crazy rollercoaster at the moment.  

And days like today certainly test our risk tolerance.

But one of my picks, Just Energy (JE.to) impressed the heck out of me this afternoon, after voluntarily sending out a press release to reassure retail investors about its monthly dividend - which is currently yielding over 12% after a recent drop in share price:

"Given that the Company believes it will meet or exceed all its financial growth targets for the year and the closing expected today of the recently announced immediately accretive Fulcrum acquisition, Just Energy sees no reason why it would consider reducing its dividend which is covered by current cashflows. The Just Energy Board has not considered a reduction in the dividend and no discussion of any future reduction is planned.

Management is not aware of anything affecting its business that would justify Just Energy's recent price decline. The Company had strong operating results during the 2008-2009 recession and benefits from difficult labour markets when identifying and training new independent sales contractors. While sustained low gas and electricity prices make new sales and renewals more difficult than at times of commodity price volatility, these conditions have been in place for more than three years and Just Energy has had record new customer additions over this period."

To the execs at Just Energy, specifically Rebecca MacDonald:  THANK YOU for giving a hoot about the little guys - and gals. I realize things could change in a heartbeat if our economy gets whacked again, but I appreciate the thought that went into this. There are numerous companies on the TSX that could learn a thing or two from you folks.

Okay, rant over.

Comments

[Jacq]

Is it this Just Energy?
http://www.youtube.com/watch?v=XYR7TixKHpo
http://www.youtube.com/watch?v=xtpNZumyM5I&feature=related

Where I used to work, we used to have a sub company of direct to consumer gas sales that was a very minor part of our main business of hedging, pipelines... I've seen a couple of companies like this that are fine, but some are not. A big part of the problem is with the salespeople, some of the slimiest people I've ever seen are in that biz. At our sub, we found people double dipping by signing the same people for more than one company. Just bizarre.

For now, I'll stick with the producers. Go Encana!

[kelsi]

jjolie - Yup, same company. That sales tactic was certainly not company policy and JE has cleaned up their act as far as the slimey salesfolks go. At least I haven't heard any recent skeletons fall out of their closet :)
That being said, if someone came to your door trying to sell you something, would you blindly take them at their word or would you actually READ the 5 year contract before signing it? To be honest, I'd never buy anything from someone who knocked on my door.
People are sheeple.