In a Critical Open Letter, Parthenon LLC Challenges Jewett-Cameron to Reassess Board Leadership

Open Letter from Parthenon LLC to Jewett-Cameron Shareholders



On January 30, 2025, Parthenon LLC, a significant stakeholder in Jewett-Cameron Trading Company (NASDAQ: JCTC), issued a powerful open letter addressed to fellow shareholders. With a beneficial ownership stake of approximately 6.2%, Parthenon is urging all shareholders to vote "WITHHOLD" in the upcoming board director elections set for February 21, 2025. They highlighted their grave concerns regarding the poor performance of the company's stock and overall business operations, indicating that the current board has failed in its responsibilities to maximize shareholder value.

The letter outlines several key issues that Parthenon believes necessitate a firm response from shareholders. Notably, they pointed to a disturbing trend of profitability decline, noting that Fiscal Year 2024 marked the first operating loss for Jewett-Cameron in at least 25 years, as per available SEC filings. Parthenon's management insists that steps are being taken to improve the situation, with anticipated positive changes expected to be reported in July 2025. However, skepticism looms over these claims, especially given the lack of board member investments in the company’s stock during a time when the stock has seen significant depreciation.

For the last decade, the stock price reflects a bleak reality, with a 15% drop in 2024 alone and a total decline of 40% over the past five years. Parthenon questions the board’s commitment, pointing out that none of the directors have purchased any shares, suggesting they lack confidence in their own company's turnaround plan. As stated in the letter, “What do they know? What do they fear? Why do they not wish to participate in the stock advance that would likely follow a significant profit turnaround?”

Parthenon LLC articulates a sense of urgency for shareholder action, emphasizing that by voting "WITHHOLD," investors can send a clear message of dissatisfaction towards the current board's performance. They declared, “This is your company and your capital at risk. The Board Directors have no personal financial investment in Jewett-Cameron stock,” noting that all stock holdings among directors have been acquired through grants or options rather than personal purchases. This situation constitutes a significant vote of "no confidence" in their governance.

The message is straightforward: shareholders must leverage their status to demand change. By withholding support for the re-election of all board directors, they can unequivocally express their discontent regarding the company's trajectory. Parthenon LLC is encouraging all investors to act collectively, aiming to influence the necessary revisions in leadership that could enhance the company’s future performance and restore shareholder value.

The letter concludes with an appeal for shareholders to prioritize the health of the business and their investments by consenting to this stance. Thomas A. Corea, the Chief Executive Officer of Parthenon LLC, is appealing to fellow shareholders for their participation in this critical juncture, promoting a cohesive front against longstanding issues within the company's strategic direction.

As Jewett-Cameron prepares for its annual meeting, the call to action from Parthenon LLC stands as a pivotal moment for shareholders—one that may dictate the future trajectory of not just the company but its stock performance as well.

Topics Financial Services & Investing)

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