Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

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

Comment by logicandinertiaon Jul 21, 2020 9:31am
162 Views
Post# 31295165

RE:RE:RE:Bounce

RE:RE:RE:Bounce

Most financials run with a lot of leverage, that is the basic business model.  Finding the cheapest funding, then lending that out, earning a spread and if underwriting and risk practices are solid, build the equity base over time.   Equity is currently one of the most expensive sources of funding, with many financials trading at or below book.  

If chw sees stability in its customer base as the world emerges to whatever this new normal looks like, then the task for the new team is to find alternative sources of funding, as there is no lack of opportunities to pursue.   

the capital returned to shareholders over the past decade from this biz model (about $7.35 per share  in dividends) shows that the model isn't a bad one.  Just needs to be refined.  

<< Previous
Bullboard Posts
Next >>