Chesswood Group Ltd T.CHW

Chesswood switch into Accord Financial?

[Method]

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.

[Method]

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