Just Energy Group Inc (TSX:JE)(NYSE:JE) has been one of the most volatile stocks on the TSX this year. After plunging back in August after the company reported some dreadful results that saw it record a loss of $275 million, which was more than six times the loss that it incurred a year ago. That came just months after the company announced it was undergoing a "strategic review."
The share price would end up collapsing, falling to under $1.50, nowhere near where it was back in July when it was closing in on $6. However, as bad as things have been for Just Energy, the stock has shot up over the past month, rising more than 70% during that time.
There wasn’t a major development or news event that drove up the price, but the stock undoubtedly attracted the attention of value investors thinking that they may have found a bargain.
Unfortunately, with the company suspending its common share dividend and Just Energy reporting such poor results lately, it may be difficult for investors to find a reason to invest in the company today. Although the stock has climbed on some large buys last month, the situation hasn’t necessarily improved for the company.
Just Energy recently announced it was selling its U.K. operations and that it would be able to achieve an additional cost savings of $20 million from its North American operations. Selling off businesses and looking to scrape any savings that they can find are not good indicators that a company is doing well.
Although the stock has risen in value, there’s just not enough behind the recent surge in price to suggest that Just Energy is any better of a buy than it was a month ago.
