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Jewett-Cameron Trading Co. Ltd. (JCTCF) is Setting Profit Records across Several Business Segments

Jewett-Cameron Trading Co. Ltd. (JCTF) is a distributor and direct seller of wood and specialty metal products to home improvement and other related retailers throughout the U.S. The company operates in four primary lines of business: Industrial Wood Products; Lawn, Garden, and Pet; Seed Processing and Sales; and Industrial Tools and Clamps. The Lawn, Garden and Pet Segments appear to be on the rise for Jewett-Cameron as the company said those business lines helped partially offset weaker demand for its wood products in its fiscal third quarter.

Oregon-based Jewett-Cameron reported record profit results for its aforementioned fiscal third quarter last month. The company earned 40 cents a share compared with 32 cents a share a year earlier, representing a 25 percent gain. Jewett-Cameron could be an interesting way for investors to play a weaker economy as consumers opt to spend more time at home. The company manufactures garden products as well as a line of dog kennels.

Investors should take note of the fact that the bulk of Jewett-Cameron’s sales, 58 percent in fiscal 2007, came from the wood products business, which has been hurt by a slowdown in the housing market. That said, the company’s earnings did rise in the most recent quarter and its balance sheet appears strong with more than $22 million in assets compared to less than $4 million in liabilities. Jewett-Cameron is also focusing on lowering expenses, which could prove beneficial for investors.

Jewett-Cameron has a market value of $16.7 million and its shares currently trade at $7. The range for the shares over the last year is $6.50 to $10.48 and the three-month daily volume average is about 1,600 shares. Roughly three percent of the company’s shares are held by institutions and mutual funds.

Beyond the strong balance sheet, the 55-year old Jewett-Cameron should directly benefit if the U.S. housing market strengthens in the coming months or early next year.

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