Chesswood Group Ltd T.CHW

Better lock it in!!

[shawshank2]

Funny the bashers on here....maybe they need to learn to read financials. Im guessing the divy was suspended as they also applied for gov assistance to help with payrolls and also as they indicated was part of getting better financing terms. I suspect we see a return to divy shortly and then back to normal in a few quarters if recovery goes well. Now the financials were all NON cash charge offs..they were forcasting for worse case scenario at the time. And guess what unemployment #s as prob half of what they forcasted at during the height of covid. Glta I bet we see a good

[TickerTwit]

(1) Charge-offs don't appear as cash losses on the income statement, but thinking of them as anything else is blind. Non-cash losses always have cash implications; cash was originally used to purchase an asset that failed to retain its income-generating potential. (2) A charge-off isn't a "forecast". PCLs are forecasts. A charge-off is a final disposition of a loan as 'value

[shawshank2]

Point i was making their free cash flow was impacted by impairment test and allowance for credit losses not realized...it was done during height of covid as a worse case scenario. What matters only 25% of people sought referrals and 90% of them were still making some payments

[logicandinertia]

Agreed. the impressive thing here is the longevity of Pawnee Leasing (the main unit of chesswood) and its performance across economic cycles .   If anything, it has been run too conservatively .  Something that helps in times like this.   25 year banking relationship with JP Morgan and good historical loan underwriting.   Illiquid stock, but if economy comes back to any great

[TickerTwit]

It's generally a bad idea to think of anything more than 5 years old as informative. 2012 is no longer relevant. If you believe that it is, you are deluded. If you do not believe that it is, you are engaging in disinformation by presenting an obsolete article as meaningful. I've followed CHW closely since 2015 and it's not the same business now; they sold off wholesome parts (e.g

[shawshank2]

Well put i think the severe actions by management lately show how sensitive it is to recessions. I have my concerns about them staying in good standing of financial covenants. All of their debt is secured so if they breach then it could be good bye shareholders

[Capharnaum]

They do get a good portion of their written off "bad loans" back each quarter though. It varies from quarter to quarter, but they do get back around 33%. So the increase in bad debt on origination during COVID-19 (they do write off an amount for the duration of the loan) will likely not materialize fully over the course of the loan considering that economic conditions will likely