Chesswood Group Ltd T.CHW

Alternate Symbol(s): CHWWQ

Financial Services

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); Waypoint Investment Partners Inc. (Waypoint), Chesswood Capital Management Inc. and Chesswood Capital Management USA Inc. (CCM USA); Rifco National Auto Finance Corporation, and 1000390232 Ontario Inc (Easy Legal). Pawnee, which finances micro and small-ticket commercial equipment for small and medium-sized businesses in the United States through the third-party broker channel. Tandem sources micro and small-ticket commercial equipment originations to small and medium-sized businesses through the equipment vendor channel in the United States.

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Chesswood Group Ltd > Chesswood switch into Accord Financial?

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Comment by Methodon May 05, 2021 9:56pm

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Post# 33138222

RE:Chesswood switch into Accord Financial?

Promise, the last post on Accord. I just wanted to follow up post Q1. They reported EPS of $0.30 for the quarter which is $1.20 annualized vs the stock at $7.95. Book value is $10.70.

https://www.newswire.ca/news-releases/accord-announces-strong-first-quarter-revenue-and-earnings-831168492.html

Method wrote:

Chesswood and Accord (ACD.TO) moved together pretty well before the pandemic. I think Accord might just be lagging because they have less news flow. They report Q1 and have their AGM on May 5 (AMC) so that might change. I'm expecting a renewal of the buyback and for them to report ~$0.25 in EPS for the quarter.

That woild place ACD at 0.7x P/B Vs CHW at 1.6x and a P/E of 7.5x. I think coming out of a recession that ROE has a good chance of going to 12% or above (it has the last two recessions) which would mean it's trading at 5.5x next years earnings. By the end of next year, they probably also restore the annual dividend to $0.36 from $0.20 now as they cut it for Covid.

Not a knock on CHW but ACD is just half the size, half the multiple, with no research coverage and there was a seller at 7 forever that just got cleaned up. ACD just looks a few months behind in getting attention from investors which is not surprising.