RE:RE:RE:Not a fun ride!DaveWpg wrote: I was away and just now saw your response Energyrunsearth.
I have held the convert debs for several years and initially bought them as investment grade fixed income (knowing that there is some risk with unsecured convertible debentures). So yes, I have lost money, and before the vote I was expecting to get 12 cents on the dollar. This is terrible for a utility (Just Energy is a utility, not an oil and gas producer). I also have lost money on my oil and gas stocks, but am not complaining, since they were purchased as higher risk equity investments. My vote against the deal was simply a protest vote, but if the deal failed and the company went bankrupt then that is the cost o my vote - it would be worth the 12 cents on the dollar. Now that the deal is altered, I am looking at about 25 cents on the dollar. This is slightly better and I am now resigned to taking a big loss - but I am not happy about it.
No worries, taken myself a bit to get back to you as well, lol.
I definitely understand that if you sold the shares now you will be taking a loss. But, the deal also factors in how hard the share price has been hit in the process. The share price is just 1/16 what it was just over a year ago, there is plenty room for a run up after the consolidation. It is your choice what to do with the share you now own, but selling at (what i believe to be) the bottem i just dont understand.
Also, Just Energy is a Ultity company yes, but the utilites they sell are Energy and Gas, hence why they are effected by gas prices. I do not know exactly how their profit structure works. But, I have read they are a highly volitile company based on there pricing structure. (Dont quote me thats just what I remember reading years ago, and why I stayed away with oil and gas struggling to survive.)
Now why I've finally bought in is I feel we have finally found the bottem of gas prices. (Maybe one more bottem to knock out more weak players in the game.) Now hopefully this era of under investment will lead to higher prices and more profit our way! :)
These are my predictions from the info I know of this company. It seems you have a different view though. And thats fine, but I thought I would just give you my opinion and the decision is always up to you in the end! And I definitely do understand if you just want out!!!
Nice chat though, Happy Trading!