Chesswood Group Ltd T.CHW

q3 results and the gorwth continues

[Nashville35]

looks pretty solid all around

growth in teh lending book +16% qoq and now $1.4 billion

expenses up due to acquisitions and spend on infrastructure.

free cash/earnings reduced by strength in cdn dollar.  but free cash still $0.55 for the quarter

in previous message, i said chw were becoming lower absolute risk due to better diversification of end markets, diversifying funding mechanisms, and move toward prime credits, which allows big ABS deals to be done.  

also announces formation of a private client business, which opens up another avenue for funding.

clear new management is moving this business from niche US equipment finance business with limited funding options to diversified special finance company with broad array of funding mechanisms.   will take time, but looks like rapid progress already being made.

+$20 stock by end of 2022.

[419lornestreet9]

really excellent result and it looks like your interpretation on the funding announcement was the correct one. US$356MM at 1.74% is very beneficial. The US business already had a funding benefit this quarter (receivables +17%, but interest expense flat) and it is only going to get better. The $100MM+ in originations a month is very strong. My guess is that some of that is driven by strength