2024-01-28 02:29:33 ET
Summary
- Jewett-Cameron has no debt and a large amount of high priced inventory it had purchased during the supply constraints of the pandemic.
- As JCTCF sells down this old inventory and replaces it with new lower priced inventory, their margins will improve.
- JCTCF has posted huge improvements to their income in Q1 after reorganizing their business and selling off their seed segment that's been unprofitable for years.
- JCTCF's property in Oregon, previously used for seed processing, has potential for a large value increase due to rezoning plans for commercial, industrial, and residential areas.
I believe that the Jewett-Cameron Trading Company ( JCTCF ) stock is currently a BUY that should be poised for a price increase over the course of the next year and beyond due to several factors. The three main major factors contributing to my buy rating include Jewett-Cameron selling off its seed business that has not produced a full year's profit since before 2020. Factor number two is the company's ability to generate future free cash flow from selling down its large inventory of products that is has already paid for (and paid off). Last but not least I think there is a strong possibility that JCTCF will sell off its seed processing and seed storage facility for much more than it's currently worth because this specific area of Oregon is currently under the process of being rezoned into commercial, industrial, and residential areas as the town of North Plains continues to expand and expects to double in size over the next 20 years.
About The Jewett-Cameron Trading Company
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Jewett-Cameron Trading Company Looks Poised For A Comeback