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Chesswood Group Ltd T.CHW

Alternate Symbol(s):  CHWWQ

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.


TSX:CHW - Post by User

Post by Nashville35on Jun 16, 2021 9:09am
202 Views
Post# 33394438

AGM

AGM

thanks for your summary. 

when looking back on chw, always good underwriters but seem like didn't manage the balance sheet v well, and funding limits forced them to be very slow growth, high payout company. 


over past year, funding restrictions have fallen, new channels opened up, funding costs have fallen and clear change in management ambition (ceo change in June last year) .  

as long as underwriting standards are maintained, and economy doesn't fall apart, hard to see how this won't continue working.   ceo already says expects operating leverage (revenue growing faster than costs) in the future so rapid loan book growth with operating leverage = higher share price.  

based on wat they have said about originations in 21 and 22, and margin profile of business, I think still at least a double from here over next 12-18 months.

and consider what dividend could be on $2 billion book even if just 40 percent of earnings allocated to dividends.  

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