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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 Capharnaumon May 20, 2020 4:52pm
208 Views
Post# 31053282

RE:RE:RE:Dead stock

RE:RE:RE:Dead stock
Rakaposhi wrote: There is zero incentive to buy this stock now. The scr wed investors twice in short order. No dividend left so what's the point? They may never pay a dividend again. I'll hold on to this for later this year and maximize the loss position closer to December.


Well... a dividend is only a small factor behind a company's valuation. Many stocks don't pay dividend (or a very small one) and have good valuations.

Despite the dividend cut, I still think chances are the stock will be worth $7+ once the economy restarts, with risks of a lower stock value should the economy stop again in the fall.

They have short term liquidity issues in funding new business as the lenders probably don't want to give covenant leniency on credit draws for new business. On the other hand, giving up new business is probably worse for Chesswood long term then cutting the dividend.

Due to all the uncertainty, it is hard to fix a long term value on the stock right now, which means the discount will stay large until they can show things will improve.

If the economy improves, there are fairly good chances for the stock to recover to $9+ with a good dividend within a year or so.
Bullboard Posts