Summary

• Stocks of Just Energy Group Inc (TSX:JE) and Zenabis Global Inc (TSX:ZENA) were among the most actively traded shares on the TSX last week.
• Just Energy Group’s stock price has gained nearly 41 per cent in the last 10 days.
• Pot firm Zenabis Global has been popular among investors, recording an average trading volume of 7.5 million in the last 10 days.

As another week begins, investors are busy checking up on stocks currently trending on the Toronto Stock Exchange (TSX). Last week, stocks of energy company Just Energy Group Inc (TSX:JE) and cannabis manufacturer Zenabis Global Inc (TSX:ZENA) emerged among the most actively traded shares on the key Canadian bourse.

Just Energy Group was one of the top market movers in terms of volume parameters on the TSX. Zenabis Global, on the other hand, left a mark in the light of its impressive quarter-over-quarter improvements in its Q2 2020 results. Let’s take a closer look at the recent stock performances of these two companies.

Just Energy Group Inc (TSX:JE)
Current Stock Price: C$ 0.465

Just Energy stocks attracted investors’ attention following recent high trading activities. In the last 10 days, it has recorded an average trading volume of over 11 million. The company currently has a market cap of C$ 70.5 million, earnings per share (EPS) of 0.23 and return on asset of about 2.54 per cent, as per the data on the TSX.

A Canadian natural gas and electricity providing company, Just Energy Group shares were trading at a high of C$ 78.54 at the beginning of the year (on January 4, 2020). Its scrips tumbled to C$ 17.49 in March when the pandemic shook up the stock market. Since then, its stock price has plunged over 97 per cent in the last six months. Just Energy shares have slumped over 99 per cent year-to-date (YTD). In the last three months as well, its stock price crashed by nearly 99 per cent.

However, things changed in the last 10 days and its scrips have climbed by nearly 41 per cent.

The retail energy provider, which operates across Canada and the United States, recently got the green light from the US’ Federal Energy Regulatory Commission (FERC) to close its Recapitalization Transaction, the company announced in a statement on September 23. Just Energy will close the recapitalization on or around September 28 (Monday). Following this announcement, Just Energy’s shares soared over 50 per cent within two days.

Just Energy Group’s first fiscal quarter 2021 (ending 30 June 2020) saw a 67 per cent year-over-year (YoY) growth in its EBITDA from continuing operations to C$ 40.5 million. Its gross margin in Q1 FY21 was over C$ 136 million, up 3 per cent YoY. The company cut down on its administrative expenses this year by 11 per cent YoY. This was possible primarily because of savings from the previous year and a restructured customer service cost amid the pandemic.

The company recorded a profit of C$ 79,150 in the latest quarter, which was a substantial increase from a loss of C$ 275,160 in Q1 FY20. However, the impact of the COVID-19 pandemic reflected in its sales in Q1 FY21, which was down 11 per cent YoY.

Zenabis Global Inc (TSX:ZENA)
Current Stock Price: C$ 0.055

In November 2018, stocks of Zenabis Global Inc were at their highest point in five years, riding high on investing trend of ‘Green Rush’. As the market corrected itself in 2019, leading to a decline in the overall Canadian cannabis industry, Zenabis Global shares also felt the heat. Between November 2018 and November 2019, the stock plummeted over 97 per cent.

Zenabis Global began the year with a stock price of C$ 0.185, only to fall by over 67 per cent during the March market crash. Its scrips have registered a drop of over 70 per cent YTD and nearly 39 per cent in the last six months.

Despite this, Zenabis Global has been popular among investors. With an average trading volume of 7.5 million in the last 10 days, it currently ranks among the top 10 most actively traded stocks on the TSX.

Zenabis Global secured net revenue of over C$ 27million in its second quarter ending 30 June 2020, up from C$ 19.9 million in Q1 2020. Its adjusted EBITDA amounted to C$ 3.1 million in Q2 2020,a 31 per cent QoQ increase. The gross margin (before fair value on cannabis net revenue)was up to 47.4 per cent in the latest quarter,from 39.7 per cent in Q1 2020.

The company also incurred a net loss ofC$15.7 million in Q2 2020, up from C$ $7.8 million in Q1 2020.Zenabis Global said that it expects to see its net cannabis revenue grow by 44 per cent to 78 per cent and record an adjusted EBITDA between C$4 million to C$6 million in the third quarter of 2020.

Zenabis Global, primarily a licensed manufacturer of medical and recreational cannabis in Canada, has a market cap of over C$ 39.9 million. Its current price-to-book (P/B) ratio is 0.306, price-to-cash-flow (P/CF) is 0.9 and debt-to-earnings (D/E) is 1.18. The company appointed a new chief executive office, Shai Altman, on September 1. It also recently launched an overnight marketed offering of units worth C$ 6 million, where itsold over 89.3 million unitsfor an aggregate gross proceeds of C$ 7.5 million.