Chesswood Group Ltd T.CHW

buying back stock under book value - good for chw holders

[Nashville35]

i like this.  they say in press release from september about freeing up US30 million in equity cause of the securitization agreement.  and they only paying 0.02 per month in dividend so excess capital building.   good idea to give it to shareholders by dividends and accretive buying back stock under book value.   buyback still only 1 million shares cause public float only 10 million shares so only CAD8.5 million to be spent around current price levels.  still seems they would have a lot of capital, but if business is strong, maybe makes more sense to start growing the loan book again.

good message to shareholders - dividend reintroduced and buying back stock along with rising earnings and book value.  if business can get to mid teens return on equity, should be trading well above book value.

canadian market over teh past month has been so great for small cap value stocks.  chw seems be in a nice spot.  attracting new buyers, despite low liquidity.

[Paddy902]

Yes, now would just be nice to see them follow through and buy up a few shares.

[Nashville35]

yes, am in agreement w/you.  hopefully this new ceo follows thru.  he bought a lot of stock personally in august. rough #s but if co. can buyback 1 million shares below book and earn = or > 20mm (like it did in 2016/17/18), good for roe (>15%) and at that point, maybe paying out lot more as dividend.  market probably pays >1.3x book if post vaccine economy is v strong

[woolco]

I expect with this announcement, vaccine, along with write offs dropping dramatically...we could see the 9.50-$10 range next week. This is back to a rising dividend stock. At values under $9 likely  will buy stock as best ROI...although ultimately with low float I suspect goal is to buy up the small supply of shares available under  $10 and then move to  double the dividend to

[Paddy902]

Good call!!