Just Energy (JE) Has Fallen 78% in Last One Year, Underperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of Miller Value Partners top stock picks. Miller Value Partners, an investment management firm, is bullish on Just Energy Group Inc. (NYSE:JE) stock. In its Income Strategy Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Just Energy Group Inc. (NYSE:JE) stock. Just Energy Group Inc. (NYSE:JE) is an energy management solutions provider engaged in electricity, natural gas, solar and green energy.

On July 17, 2019, Miller Value Partners had released its Income Strategy Q2 2019 investor letter. The investment firm said that Just Energy Group Inc. (NYSE:JE) was one of the biggest contributors to its performance in Q2 2019. Just Energy Group Inc. (NYSE:JE) stock has posted a return of -77.7% in the trailing one year period, underperforming the S&P 500 Index which returned 15.1% in the same period. This suggests that the investment firm was wrong in its decision. On a year-to-date basis, Just Energy Group Inc. (NYSE:JE) stock has fallen by 83.1%.

Let’s take a look at comments made by Miller Value Partners about Just Energy Group Inc. (NYSE:JE) stock in the Q2 2019 investor letter.

“Just Energy Group (JE CN) advanced 27.03% over the period. The company reported fiscal Q4 EBITDA of C$69M, falling short of consensus of C$75M, driven by a lower-than-expected gross margin of C$198M. Gross margins per residential customer ticked higher to C$386 (+11% sequentially) as the company continues to execute on its strategy of adding higher-margin customers. Management initiated fiscal 2020 EBITDA guidance of C$220M-C$240M (+13% year-over-year at the midpoint) and free cash flow guidance of C$90M-C$100M with potential upside from working capital improvements. The company maintained its $0.125/share dividend (9.1% annualized yield). Further, the Board of Directors announced they’re undertaking a formal review process to evaluate strategic alternatives following expressions of interest from a number of parties.”

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In Q1 2020, the number of bullish hedge fund positions on Just Energy Group Inc. (NYSE:JE) stock decreased by about 43% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with Just Energy’s growth potential. Our calculations showed that Just Energy Group Inc. (NYSE:JE) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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Disclosure: None. This article is originally published at Insider Monkey.