TSX:CHW - Post Discussion
Post by
Nashville35 on Nov 02, 2022 9:18am
capital return
based on trading patterns, looks like buyback has been active since beginning of october. this shud be confirmed when the monthly buyback report is filed. max allowed daily buyback is 3,886 shares.
if accurate, company likely spent ~$1m on buybacks and ~$740k on dividends in octover. if maintained , represents annual shareholder return of $21million on run rate basis. >10 percent shareholder yield.
good to see for 2 reasons:
1) small cap liquidity in Canada barely exists so buyback does help partly offset supply of tired/worried retail sellers .
2) based on my perception of intrinsic value at chw, buyback accretive to existing shareholders.
as being seen by 3q earnings reports, lenders still seem in decent shape. think same for chw when they report. expect some slowdown in originations as ceo said last quarter, but with completion of abs in august and payoff of all outstanding warehousing facility and part of revolver, liquidity should not be an issue for chw (allows things like buying back stock).
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