Chesswood Group Ltd T.CHW

big insider buying returns to CHW

[Nashville35]

in the month of august 2021, the following insider BUYs have taken place (no SELLs):

chairman ed sonshine - has bought 40,000 shares at avg $11.70 both personally and thru comrev investments

director (and former chairman) fred steiner - increased position by 43%

ceo ryan marr - purchased another 9,700 shares at avg price of $11.60

daniel wittin - who moved over when chw bought vault - 21,400 shares both personally and thru holding company.

the ceo is now up to almost one million shares in ownership, chairman sonshine is at 1.9 million shares and daniel wittin at ~1.9 million.  that is ~28% of total shares outstanding.   not sure if holdings companies of mssrs sonshine and wittin are reported separately, as this also showing same level of ownership (1.9 million each), which wud put insider ownership much higher.

either way, when two most senior directors and two most senior executives are adding to already large ownership positions, and they have day to day visibility into the business and are crafting the strategy, happy to stay long...

think this cud be a +$20 stock by end of 2022 based on growth in loan book and further diversifying and lowering cost of funding.

[419lornestreet9]

thanks for flagging. about 100k shares purchased this month. marr purchased pretty heavily in august last year (250k) shares, but this was after the run up from high 3s/low 4s to high 5s/low 6s. they also made about 500k in share purchases in november & december last year. However, again, this was after the run up from high 5s/low 6s to high 8s/low 9s. i doubt this implies anything imminent

[kdess]

The best promotion is insider buying . Relatively very few  shares outstanding & I personally wouldn't want the  volatiility  that comes with traders moving in & out based on the news of the day.

[Nashville35]

i understand frustration, but i don't share it.  fundamentally, buying back stock and insider buying is good leading indicator.   using conservative assumptions for margins base on likely ending loan book balances for 2021 and 2022, earnings, free cash flow and potential dividend shud be lot higher than t12m.  and company has stated that is chasing inorganic opportunities and

[419lornestreet9]

thanks. on the higher share price. they are looking at inorganic opportunities, so a higher share price would be helpful in expanding the acquirable set of companies. imagine being able to acquire some private financial company at 5x and have it valued at 10x or 15x as part of your company. keep in mind that these insider purchases are quite immaterial when compared to existing holdings. the CFO