Post by
TheRock07 on Jan 06, 2011 1:19pm
Superb BUY on Strong Fundamentals
the fiscal year ended August 31, 2010 Jewett-Cameron reported net income of $1,982,814, or
.83 per diluted share, on sales of $41.57 million, compared to net income of $1,582,477, or
.66 per diluted share, on sales of $42.13 million in the same period a year ago.
Despite a tough business environment, JCT increased its net earnings for each of the 4 quarters in 2010.
Sales for the fourth quarter of fiscal 2010 totaled $14.0 million compared to sales of $10.6 million for the fourth quarter of fiscal 2009. The company reported net income of $908,745, or
.38 per diluted share, compared to net income of $549,335, or
.23 per diluted share in the fourth quarter a year ago.
2011 is now expected to show much stronger economic growth in North America and JCT is well positioned to capitalize on its sales streams.
As such, 2011 sales should increase to the $55 million range , with net earnings in the $1.50 range.
As of August 31, the Company's cash position was $8.7 million, or about $3.80 per share and currently there is no borrowing against its $5.0 million line of credit.
Given these fundamentals, a fair value above $15 per share is qute reasonable.
Further, a takeover is also possible.......................and a share split is certainly advisable..