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Chesswood Group Ltd T.CHW

Alternate Symbol(s):  CHWWF

Chesswood Group Limited is a Canada-based holding company. The Company, through its subsidiaries, engages in the business of specialty finance, including equipment finance throughout North America and vehicle finance and legal sector finance in Canada, as well as the origination and management of private credit alternatives for North American investors. Its subsidiaries include Pawnee Leasing Corporation (Pawnee), Tandem Finance Inc. (Tandem), Vault Credit Corporation (Vault Credit), Rifco National Auto Finance Corporation and others. Pawnee, which finances micro and small-ticket commercial equipment for small and medium-sized businesses in the United States through a third-party broker channel. Tandem, which sources micro and small-ticket commercial equipment originations to small and medium-sized businesses through the equipment vendor channel in the United States. Vault Credit provides commercial equipment financing and loans to small and medium-sized businesses across Canada.


TSX:CHW - Post by User

Bullboard Posts
Comment by constructionsiteon Mar 10, 2015 11:35am
184 Views
Post# 23505645

RE:RE:Are we going around again?

RE:RE:Are we going around again?Yeah, it does seem surprising on one hand that there has been so little traction with the good news.  On the other hand, look at the general market.  Lots of investment capital rotating today around the world, and with many big names dropping, a certain segment will be moving from small cap to large cap -- the flight to quality, as it were.  I expect this stock to rebound nicely when the general market does, but for now it feels a bit like a play that is leveraged to overall market sentiment.

Mitigating this volatility though is the ~6% to 8+% dividend.  If you believe in that and then you also factor in the announced projected increases to our bottom line with the new acquisition (even if we discount these projections by 50% for the hubris factor) this remains overall a strong buy, imo.

My take is that the volatility was and is to be expected after all the manipulation we saw in the last few weeks.  This stock is going to take a while to calm down after all of that, and that's without the general market malaise (if not outright implosions) that continues.  So for me, I welcome more price weakness as a buying opportunity.
Bullboard Posts