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As Guitar says they have always been a low profile company, perhaps not the most exciting market they are in - however I first bought about 15 years ago when they were around £1 with a dividend of circa 10p = 10% with everybody worried about being a run off business, can they find more books to run at the right price, and therefore going to disappear one day etc.
Still going at over 2 1/2 times the share price and double the dividend - still people doubting...... take your choice!?!
This company needs to work on it's PR
Loughton/ Surprised: I believe the 400p is Panmure Gordon's estimate of Economic Value in 2020 (i.e. the marked-to-market valuation of Chesnara's constituent parts). This is down from circa 445p in 2019 and Panmure estimates it will drop again to 387p in 2021.
Chesnara should always trade at a discount to its Economic Value since, assuming that EV is fair, it wouldn't be easy to quickly dispose of assets. The question is, how much of a discount is warranted?
Most importantly, there is a decent cash pile (£77m) which covers the divided for two years at least. That should give them confidence to maintain/ slightly increase the dividend over the next couple of years. Beyond that, there are "headwinds" in terms of finding new business at the same rate of return as expiring portfolios. However, with footprints in the UK, Netherlands and Sweden there is a decent amount of diversification.
The share price is disappointing and I did reduce a while back. But I've been a holder since 2013 and do so mostly for the solid dividend.
Guitarsolo
I love the yield so picked up a few more today on this update.
As you say, IC stick with their advice ..... but I don't think they, or anyone else has a target price of 400p.
Or maybe that's your target price?
https://www.investorschronicle.co.uk/shares/2020/09/28/mixed-bag-for-chesnara/
Tip Update: Buy at 278p ...target price 400p
Results due 28 Sept. interim ex divi date 8th Oct. according to website
ex divi 10.09.20 :-)
Due soon?
Bought in about 8 weeks ago. Hasn't gone well, sold this morning, nursing a heavy loss. Seems a good business but difficult to navigate where SP is going. Bought into a mining company that's up for sale. Hope to recoup and more. Good luck to all holders.
a rare divi payer and increased it every year, solid performance and well run :-)
Watched interview on proactive investors re company. Little impact from Covid. Apart from a biggish currency cost last year all seems good. Dividend has increased every year so far which is always important.Seems good business in my opinion but as always DYOR.
With the fall in value of many small caps this could start moving into ftse 250 territory - always good for an uptick in value.
https://www.share-talk.co.uk/announcements/rns/chesnara-plc/director-pdmr-shareholding/202005010700065701L
a very decent buy from a non exec :-)
Good review in Investors Chronicle highlighting divi resilience and future prospects.
Yes, bit of welcome news in these dire times. Been a holder on and off for years in this stock and it has always been reliable. Judging from the inactivity on this board seems a well kept secret !
https://twitter.com/surprised_trade/status/1250369534223097857
Investors Chronicle today re CSN ..and recommend it as Buy
https://twitter.com/surprised_trade/status/1250315032321093633
continued to deliver strong cash generation, Economic Value increased significantly funding the dividend increase' .excellent results
https://twitter.com/surprised_trade/status/1244518146561761280
Proposed 3% increase in 2019 final dividend to 13.87 pence per share, well capitalised, solvency cover ratio of 164%, Operationally resilient - A divi payer increase
https://twitter.com/surprised_trade/status/1238864836777345031
divi , profitable, generates cash and has increased divi year on year and recently acquired new life insurance business
John Deane, chief executive, Chesnara stated 'The business is well capitalised, cash generative and profitable, while fulfilling our acquisition strategy of being economic value accretive, operating within our core target markets and offering a strong strategic fit at an attractive discount.'
bargain price ;-)
why further up today?
why up today?
... and clear good couple of months here.
Bought back on the drop earlier in the week ;)