OTCPK:JENGQ - Post by User
Comment by
DaveWpgon Sep 29, 2020 8:43pm
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Post# 31639808
RE:RE:CIBC research - $14 target
RE:RE:CIBC research - $14 targetI see that the CIBC target of $14 is based on a current EV/EBITDA of about 5 at at share price of about $7. As far as it goes that makes sense but the problem is that JE profitability is inconsistent and the operating margin it is only about 1% vs a Utilities average of about 15%. I guess that the change in management is giving hope to some investors, but hope is generally not worth a lot unless it is supported by data - which we don't have yet. I had my convertible debentures converted to shares and they are currently worth about half of what I paid. I have decided to hold on for the time being but if they get to $12 I will sell and take a small loss. If they go to $2 then I will sell and take the big loss on this garbage company. I expect the latter. Note that CIBC has a neutral rating even though the share price is half of what they target. Not a vote of confidence!