What a ride canadian small cap so interesting. chw good ex.
june 30 - trading at 1/2 of book value announce new ceo and in the middle of biggest crisis to retail, riocan ceo decides to rejoin chw and chair the board . that was big sign for me, as sonshine smart guy.
early august - reports results , says they been too aggressive on credit loss reserves in q1 and reverses some. says customers paying again and 66 percent of customers are prime credits, highest in history. upbeat commentary .
late august - insiders start to file reports showing huge buying in high $5s, $6 range.
late septemver - announce big securitization, saying they cut funding costs by full 1 percent and freed up us$30 million in capital, 40 percent of market cap at time. the funding cost cut would have been 0.40 accretive to earnings on a $5 stock.
share price did nothing in that time , even staying under $6 (book of +$9) after massive insider buying. Only in November did stock start to lift with release of q3 that confirms what they had been hinting at - freed up capital and better lending environment meant they could start returning capital.
insider buying has continued from mid November to first week of december. old ceo ran biz for 20 years. if new ceo can make +++ change , roe can climb and stock multiple. big question is why are they buying so much stock ? following insider buying a good recipe to make money imo.