Jewett-Cameron – is there a catalyst ?

Jewett-Cameron is buying back shares like crazy.  They defined a rule in their last share purchase plan approved that they could buy blocks of 5000 shares minimum at a minimum price of 50000$.  The current price of JCTCF is over 10.78$ so well above the 10$ mark and volume is on steroide for this micro-cap stock.  Average volume is around 4000 shares traded a day in the last years but average for the last week is over 10000 shares traded!

The current board owns over 48% of the company (without considering the buy-backs since publishing in december) and the employee investment fund of the company owns another 20% or about of the business.  Giving the board an effective power around 68% on the company.  The current share repurchase plan gives the board the power to buy back up to 15% of the company.

Considering these factors, I think there is a possibility that the board is trying to get this company private.  It would save them around 200k a year in auditing fees all of which would go back directly in their pockets.  I would not be suprised if they announce a reverse merger as soon as results are coming in with a nicer look.

Until then, I’m willing to wait until we touch the 14$ mark has discussed previously on this site here and here.

Disclosure : Author has a position in JCTCF.

Tagged with: , ,
One comment on “Jewett-Cameron – is there a catalyst ?
  1. […] the buyback craziness (see here) is still on the run!  They cancelled for 3M$ in the fiscal year or 1M$ in the last fiscal quarter […]

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: