Just Energy Group Inc. (Canada) T.JE

RE: Will not cut dividend

[michigan33]

They will not touch the Dividend until at least next year.  They've made it clear in their initial cut and later in their press release regarding cash flow that their dividend policy will remain intact at $.07.  There's always a lot of people who dump stocks after dividend cuts, then speculators come in and cause a lot of volatility.  I'm going to guess that the bottom is in around $6.  I think it will remain volatile for a while (3-6 months), but as the free cash flow increases and with a very generous dividend (event with the cut), I believe this stock will be a solid gainer for the long term.  If you just analyze energy prices (especially nat. gas), they don't have much room to go lower and nat. gas looks solid around $4.  The last 4-6 quarters of reporting have been with nat. gas prices around $1-$2.50.  Yes, their nat. gas sales will lessen entering the summer months, but over the long term the higher prices will help inflate their balance sheet.  In the end it's nice to accrue a dividend while we sit and wait for a better share price.  It sure beats a savings account.

I would love to hear other opinions on this or any upcoming quarterly report predictions.