Is CHW.TO undervalued?

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Hi, it looks like since the 2022 results came out CHW.TO has been on a downward spiral. That said, Q2 2023 results reflect both challenges and growth opportunities as the company focuses on addressing credit weaknesses and expanding its fee-based products. All this to say, with the stock price well below its 50 and 200 EMA, is it worth considering the stock as undervalued?

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Asked on September 4, 2023 10:09 am
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This is not a stock in particular I'd be focusing on at this moment in time primarily due to the business it operates in. We're talking about a specialty finance company deriving a big chunk of its revenue and growth from small to medium businesses.

Most of its growth comes from its US segment as well, which is seeing weaker earnings and higher rates are really hitting this company hard.

There is too much uncertainty here in my opinion and taking a chance on a small cap lending company who simply cannot withstand prolonged periods of high interest rates is pretty challenging right now to be honest.

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Posted by Dan Kent
Answered on September 6, 2023 4:29 pm
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