Wednesday, October 7, 2015

Recent Sale

        I have own a certain stock for a while. This stock has cuts it dividend a few times since I became an owner. This company is Just Energy (ticker Symbol JE) , which trades on both the TSX in Toronto and the NYSE.
       
         Just Energy is a Canadian Energy Management solutions provider involved in electricity, natural gas, solar and green energy. A part of their business is providing customers with long term fix pricing.
     
          I have dripped this stock inside my brokerage account  for a while acquiring more "whole" shares. I acquired 152 shares alone though dripping of this stock.  I sold all my shares of JE on Oct 2,  via a market order, for a total of $6476.45.

 The stock was above my cost basis. So why did I sell? Just Energy used to be an income trust and then changed to a corporation. JE has a high dividend payout ratio which is sometimes over 100% and company did not grow very much. This company has many negative earnings reports over the past several quarters.  The run up in the stock is possible due to  a private holding company is buying up a lot of shares. 

SUMMARY

Initial Cost  (Adjusted Cost Base ) including commissions = $5997.31
Proceeds of Sale including commisions  = $6476.45

Profit = $479.14

 I sold to lock in profits.  

     My adjusted cost basis was approximately $7.88 per share. I wanted to sleep well at night  so holding 761 shares was too big of a position and having too high of an ACB made it an easy decision to sell. If I plan to own this stock in the future it will not be a big position.

DISCLAIMER
I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.

7 comments:

  1. JE is something I wouldnt touch. Glad to hear that you were able to lock in a profit and exit the position. Like they say - No one went broke by taking a profit.

    cheers
    R2R

    ReplyDelete
    Replies
    1. R2R,

      I was glad to exit the position for the profit. Although the price went even higher I think it will not last. As their customers have rates that can be locked in for years, if JE cost is higher such with higher commodity prices then there earnings will be lower and possible negative. I think they had positive earnings last quarter, and lower oil prices definitely help with that.

      Delete
  2. Smart move in my opinion, if the facts that originally led you to make the purchase have changed you need to reassess your investment, you were monitoring your investment caught the changes and saw the declining earnings and took a profit. Smart move.

    ReplyDelete
    Replies
    1. Dividend Chimp,

      They use to have over $1 billion in debt. They sold off a non-core asset in the last year that brang the debt down to around $600 million. When the company switched from a income trust to a corporation, they should of cut their dividend a lot more at the time.

      There a definitely a lot safer places for my money. I expect the stock price to fall to below $7.00 over the next several months.

      Delete
  3. Im glad you got out IP. Money is best spread into other HIGH QUALITY assets. Buy the best going forward bud. SWAN like you said and that's good for our mentalities.
    Thanks for sharing and can't wait to hear what you put your money into.
    Cheers my friend.

    ReplyDelete
    Replies
    1. Dividend Hustler,

      It was definitely great to get out of this position with all its negative quarters over the past couple of years and a few dividend cuts to add to the fire. When they switched to a corporation from an income trust, they should of cut their dividend more as they would be taxed at the corporate level as a corporation.

      There a definitely better quality assets our their that is for sure. Especially ones the raise their dividends.

      Delete
  4. Smart move. We used to own JE as well and sold it a while ago.

    ReplyDelete