OTCPK:JENGQ - Post by User
Post by
lighter789on Sep 11, 2015 8:46pm
189 Views
Post# 24098062
Two points to share
Two points to share1. Remarkably, the short interest in Just Energy has increased.... see: https://www.nasdaq.com/symbol/je/short-interest..... this bodes very well for the future as the short position either eventually unwinds, or a bid materializes.
2. Although perhaps not fully appreciated, one third of the margin improvement (i.e ~9M of 27M) seen in the recent first quarter results was attributable to weakening of the Canadian dollar. This has continued, and the substantial further decline to approximately 0.75 (Can$ to US$), with the greater levels of profitability generally seen in later quarters, will significantly enhance the ability to reduce debt [potentially, the exchange rate effect may increase profits by 50-70M p.a.].
Naturally, the continued buying of RJ at $8.05 and $8.10 is very positive too.