Callidus Capital Corp | StockChase
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Callidus Capital Corp (CBL-T)

Last Price Recorded: $10.2500 on 2017-11-20

ON STOCKCHASE SINCE Oct 2014

Financial Services

Callidus Capital Corp


Signal Opinion Expert

2017-10-04

COMMENT
Callidus Capital Corp (CBL-T)

He is still very confident in this. In Oct /16 they announced a privatization plan, and hired Goldman Sachs to lead the process. Had set a guidance on privatization by the end of June/17. Shortly before that, they announced privatization had been delayed, so the share price sold off. Management still expects something to occur in the fall, and still remains positive. A very good business. The underlying capacity has actually grown over the last 1-1.5 years, so when they do re-start their lending, the capacity of the company will be something that will be taken into account by potential buyers. When they announced the delay, they also announced they were exploring opportunities with private debt funds, which is something that hadn’t been taken into account. 12% dividend yield is a red flag to investors, but the leverage of the company is 25%-30%, and management feels it should be closer to 70%. They will absolutely use their balance sheet to fund the dividend, and there is no way they will cut the dividend.

Financial Services
Jerome Hass

Portfolio Manager, Lightwater Partners

Price: $10.120
Owned: Yes

2017-08-15

COMMENT
Callidus Capital Corp (CBL-T)

When buying this kind of investment, you are betting on the individual or management team running it. Whether it is a rough quarter or a good quarter, it shouldn’t change your outlook or long-term view on the business. These kinds of structures are generally focused, and the people running them do a great deal of due diligence before investing. He wouldn’t let a bad quarter derail you from holding it long-term.

Financial Services
Kash Pashootan

Sr. VP & Portfolio Manager, First Avenue Advisory, Raymond James

Price: $10.670
Owned: No

2017-08-02

COMMENT
Callidus Capital Corp (CBL-T)

Things look pretty interesting right now. Payout ratio looks very low in the 10%-20% range. They provide financing to distressed companies. The core business is high risk, but all loans are backed by the assets of the Company they are providing financing to. They’ve had an independent valuation from National Bank (NA-T) and their price is $16-$18, and are in the process of trying to sell it right now. The sales process has been delayed so they are opening up to more potential buyers. To him, the distribution looks quite safe.

Financial Services
Ryan Modesto

Managing Partner, 5i Research

Price: $15.320
Owned: Unknown

2017-07-13

PAST TOP PICK
Callidus Capital Corp (CBL-T)

(Top Pick Jun 10’16, Up 3.42%)  Last year they announced a 4 stage plan.  At the end of October they announced a privatization plan, but it has been delayed.  They are considering a private debt fund.  Hold it if you understand the math.

Financial Services
Jerome Hass

Portfolio Manager, Lightwater Partners

Price: $14.460
Owned: Yes

2017-06-26

DON'T BUY
Callidus Capital Corp (CBL-T)

It is specialty financing so they get caught up in the whole HCG-T space.  CBL-T is in a corporate mess.  You have to wait for the dust to settle.  When there is something this acute, the chart and technical analysis are not useful.

Financial Services
Larry Berman CFA, CMT, CTA

Chief Investment Officer, Partner, ETF Capital Management Inc.

Price: $14.970
Owned: Unknown

2017-06-23

DON'T BUY
Callidus Capital Corp (CBL-T)

A high-risk lender. It is down a lot and offers a dividend yield, and they’ve been buying back tons and tons of stock. If there is any downturn in the economy, some of the protection that was offered on their loans from their parent company, has now expired. He would stay away.

Financial Services
James Hodgins

Chief Investment Officer, Curvature Hedge Strategies

Price: $15.040
Owned: No

2017-05-05

PAST TOP PICK
Callidus Capital Corp (CBL-T)

(A Top Pick April 26/16. Up 8%.) An asset based lender to distressed companies. They deal with companies that banks won’t touch. A controversial name and is down about 20% in the last 2 days. It is in the midst of a privatization process and had 19 expressions of interest. They’ve reduced this down to 6 or less. The guidance range as from $18-$22. Given that the stock is trading at about $14 with a 7.5%-8% yield, the privatization announcement is scheduled to take place prior to the end of June. With less than 2 months’ horizon it is a pretty good risk/return in his view. He thinks he is going to have a very happy outcome 2 months from now.

Financial Services
Jerome Hass

Portfolio Manager, Lightwater Partners

Price: $13.960
Owned: Yes

2017-04-04

COMMENT
Callidus Capital Corp (CBL-T)

Makes very high risk loans to companies that don’t have other alternatives. Post its IPO, it has performed very poorly. They said they were investigating strategic alternatives. Feels the ultimate goal was to be selling the company with valuation in the $18-$22 range. There is a chance they could be successful. The business is very difficult and very hard to scale. They make loans to businesses that are in very far-flung industries, a reason banks don’t lend to them. Not a name he would own.

Financial Services
Gerard Ferguson

CEO & Portfolio Manager, Jemekk Capital Management

Price: $17.980
Owned: No

2017-03-27

HOLD
Callidus Capital Corp (CBL-T)

A lot of people have been buying the stock on anticipation of privatization.  If it does not get bought there should be a sell off.  They had 17 companies interested so he doubts the deal would not go through.  He would see the company continuing to buy back stock.

Financial Services
Peter Hodson

CEO & Head of Research, 5i Research Inc.

Price: $18.320
Owned: Unknown

2017-02-22

COMMENT
Callidus Capital Corp (CBL-T)

They indicated taking the company private. There was an update on a press release about a week ago, where they indicated the privatization had 17 expressions of interest. The process started October 31 and the CEO thought it would be about a 6-month process, so by the end of Q2, he expects the process will be completed. Probably worth $2 over the value.

Financial Services
Jerome Hass

Portfolio Manager, Lightwater Partners

Price: $18.480
Owned: Yes

2017-02-21

COMMENT
Callidus Capital Corp (CBL-T)

Payout ratio on 4th quarter trailing cash flow is 28%. The challenge is near term earnings which are forecast to grow significantly from $1.19 to $1.82, a 53% earnings growth forecast for 2017 gives a PE of 10X and a PE/Growth of .2 which is particularly attractive. ROE of 19% is forecasted for this year with 11% free cash flow yield. Dividend yield of 6.5%.

Financial Services
Robert McWhirter

President, Selective Asset Management

Price: $18.380
Owned: No

2016-12-29

TOP PICK
Callidus Capital Corp (CBL-T)

The CEO said 4 things to improve the share price. 1.) Initiated a dividend, 2) bought back shares, (bought back shares himself) 3) launched a substantial issuer bid, and 4) taking the company private. He has hired Goldman Sachs (GS-N) to do so. Thinks it gets taken out by at least $24, a 30% upside from here. You get a 6.5% of it in yield while waiting. Dividend yield of 6.67%. (Analysts’ price target is $19.69.)

Financial Services
Jerome Hass

Portfolio Manager, Lightwater Partners

Price: $18.060
Owned: Yes

2016-10-04

PAST TOP PICK
Callidus Capital Corp (CBL-T)

(A Top Pick Nov 24/15. Up 80%.) Long. (A Pairs trade with a Short on Canadian Western Bank (CWB-T). This is a name that nobody liked and has traded down as low as $7 in Dec/15. It is a classic textbook example. If you are a CEO and fighting a Short Seller, you 1) deliver operationally and 2) put your money where your mouth is. In this case the CEO went out and bought shares, increased the dividend, completed a normal course issuer bid and took the extraordinary step of getting an individual evaluation of the company done. He also said if the share price did not reflect the underlying value, he was going to take the company private. Still feels the stock is extremely attractive.

Financial Services
Jerome Hass

Portfolio Manager, Lightwater Partners

Price: $16.660
Owned: Yes

2016-06-10

TOP PICK
Callidus Capital Corp (CBL-T)

An asset backed lender who lends to distressed companies. A lot of their companies may be in bankruptcy, which obviously spooks a lot of people, so it is very easy to put a Bear case on this. He invests on the basis of risk versus return, not sentiment. Had a high in November/14 of about $22, went down to a low of $7. In December, at tax loss selling, it became his largest position. There is a substantial issuer bid backstopping it at $14. There is a normal course issuer bid who has said they are willing to pay as high as $16.50. They just bumped up the dividend 50% giving you a 6.8% dividend yield. There is a potential take out at year-end.

Financial Services
Jerome Hass

Portfolio Manager, Lightwater Partners

Price: $14.880
Owned: Yes

2016-05-12

SELL
Callidus Capital Corp (CBL-T)

High risk lender and a high risk stock.  He owned it just after it came out.  The management are not friendly to shareholders.  They lend to high risk clients.  They looked recently into buying back stock or taking the company private.  He sold and is not looking to get back in.

Financial Services
Peter Imhof

Vice President & Portfolio Manager, AGF Investments Inc

Price: $13.540
Owned: No

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