# Jamieson Wellness (JWEL)



## smc_99 (May 17, 2017)

I think I'll be getting on board this one tomorrow when it debuts, didn't get any through RBC in the expression of interest. Everyone is taking their vitamins and the valuation on this company looks on the low side. Most of the Ipo is also a treasury offering rather than owners looking to cash in. Looks to pay a 1% dividend initially. Don't think this will pop tomorrow but a longer term play. What do others think?


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## OptsyEagle (Nov 29, 2009)

Did you read the offering prospectus. I believe the current shareholders are cashing in quite a bit. I think 3.5 million shares are being sold by current shareholders and if the over-allotment is exercised (usually is) they will unload another 2.86 million shares. PLUS, the money going to the companies treasury is not staying there. The current shareholders rejigged things just before this IPO to end up owning some preferred shares and the treasury is using a lot of money to buy them back after the IPO. So in effect this rejig allows them to get their hands on some of the treasury money, as well. It's a nice way to fool investors who do not want to read a 300 pages prospectus

That being said, not much above is abnormal in an IPO, I just wanted to let you know that the current shareholders are cashing out a lot of holdings for a big payday...as most do in an IPO. They are not stupid.


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## smc_99 (May 17, 2017)

Thanks for the comments. I guess this is what makes it so hard to know what to look for in IPOs. I guess that's why it's always best to wait for more financial data to come out after a few quarters


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## Oldroe (Sep 18, 2009)

Just a general rule 500 million value company should be about $10/share. That's total value real estate, product ,intellectual property, everything.

I read some where the whole industry in Canada is 426 million and Jamison has 25%. With 1 million in sales I put this company at under $10.

So with these assumptions I would start reading the prospectus. Likely not for long!


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## smc_99 (May 17, 2017)

Thanks, read over the prospectus carefully. This looks like a stock ready to sink actually. They can't even make money with the revenue that they pull in (which is actually decent) due to them paying loads and loads in preferred stock accretion. What a joke! I'm glad I pulled my money out of this stock before it tanks. Thanks for the advice!


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## james4beach (Nov 15, 2012)

This now trades as JWEL

It's been extremely strong this year so far, hitting new all time highs. I don't own it, but it's on my watch list (will take a closer look at my next portfolio review). Also nice that it only pays a small dividend, only around 1% yield.


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## james4beach (Nov 15, 2012)

It's been about 3 years since JWEL was listed. It's returned 26% CAGR over three years, compared to 6% CAGR for the TSX Composite.

I went shopping for vitamins today, and the Jamieson brand was mostly sold out. They aren't having any problem moving their product, that's for sure. The most recent quarter's MD&A says:
​_Revenue in the Jamieson Brands segment increased by $13.8 million, or 24.5%, to $69.8 million in Q1 2020 due to strong growth in domestic and international Jamieson Brands sales of $11.2 million and $2.6 million respectively. The impact of COVID-19 has accelerated the demand for our products in March leading to the reported increase in shipments. Our domestic Jamieson Brands sales increased by 21.9% reflecting the continued success of our consumer and trade programs as well as the acceleration of sales due to the impact of higher demand for immunity and general health supplements. Our international business continues to grow, increasing 51.3% compared to Q1 2019, led by strong growth in multiple geographies as demand for immunity products increased significantly, particularly in China and Europe._​​


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## MrMatt (Dec 21, 2011)

Forward P/E of 30+ seems a bit rich.


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