Author Topic: WED - Westaim Corporation  (Read 11458 times)

Steven B

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Re: WED - Westaim Corporation
« Reply #20 on: February 14, 2019, 07:32:09 AM »
Sorry that came out wrong. Guess what I'm saying is I have no idea about the loan quality except from the very limited data in the filings. looks good but can't say for sure.


LightWhale

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Re: WED - Westaim Corporation
« Reply #21 on: February 14, 2019, 09:10:27 PM »
I see your point now. But going over the subtleties of each loan would doubtfully helped form a better investment thesis. Even within Arena there are no more than a handful of people who do that. And we can never do it when investing in banks, of any size.
However there are various indications which provide a partial safety net: previous results of DBZ, current results of Arena, the investment by Fairfax, ownership structure and incentives, AUM growth, loan portfolio diversification, the financial literacy of Delaney,MacDonald and Kittel, and so on.
« Last Edit: February 14, 2019, 10:00:27 PM by LightWhale »

Steven B

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Re: WED - Westaim Corporation
« Reply #22 on: February 15, 2019, 10:21:48 AM »
Your points are all valid. There are very good reasons to assume that we're in good hands.

doc75

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Re: WED - Westaim Corporation
« Reply #23 on: March 14, 2019, 07:56:09 AM »
There was a huge volume spike a couple days back that seems to have cleared out some overhang on WED.    I wonder how much of the drop from $3.20 to $2.40 in late 2018 was due to speculative money making an exit after the "unsolicited enquiries" they announced last spring did not materialize.

This is definitely a bit of a black-box bet-on-the-jockey type situation, but the market really isn't giving them much credit at all at a 15-20% discount to book.

doc75

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Re: WED - Westaim Corporation
« Reply #24 on: March 28, 2019, 06:37:13 AM »
Q4 results came out yesterday.  A very good quarter IMO, particularly given the state of the markets.  The shareholder's letter is now posted on Sedar (preface to the annual report) and is worth a read.   

Philbert77

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Re: WED - Westaim Corporation
« Reply #25 on: March 28, 2019, 04:59:40 PM »
Yes, it is a very fascinating read.

I found the below chart very interesting. They have grown the fully diluted book value per share (FDBVPS) in recent years while the stock price has languished and declined.

                FDBVPS    Share Price
                USD CAD  USD CAD

2014 - Q2 2.00 2.13 3.00 3.20
2014 - Q3 2.36 2.64 2.68 3.00
2014 - Q4 2.34 2.71 2.63 3.05
2015 - Q1 2.33 2.95 2.65 3.36
2015 - Q2 2.33 2.91 2.61 3.26
2015 - Q3 2.31 3.09 2.09 2.80
2015 - Q4 2.27 3.14 1.97 2.73
2016 - Q1 2.28 2.96 2.08 2.70
2016 - Q2 2.24 2.91 1.99 2.59
2016 - Q3 2.22 2.91 2.06 2.70
2016 - Q4 2.21 2.97 2.09 2.80
2017 - Q1 2.23 2.97 2.01 2.68
2017 - Q2 2.24 2.91 2.45 3.17
2017 - Q3 2.27 2.83 2.39 2.98
2017 - Q4 2.33 2.92 2.48 3.11
2018 - Q1 2.35 3.03 2.20 2.83
2018 - Q2 2.37 3.12 2.45 3.22
2018 - Q3 2.40 3.10 2.48 3.21
2018 - Q4 2.42 3.30 1.89 2.58

The section about Arena was also very interesting. The details about their proprietary IT systems and how many deals they analyze before actually funding - "In 2018, Arena’s investment teams reviewed ~10,000 potential investments, eventually funding 68".


https://westaim.com/wp-content/uploads/03.-Westaim-2018-Annual-Letter-v11.0-FINAL_signed.pdf

doc75

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Re: WED - Westaim Corporation
« Reply #26 on: April 11, 2019, 08:02:47 AM »
Enormous volume yesterday and looks like it will be very high again today.   The stock hasn't moved much at all so I guess these are some type of cross trades?



doc75

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Re: WED - Westaim Corporation
« Reply #27 on: May 16, 2019, 04:45:35 PM »
I just caught the following headline in a Google search. The article is behind a paywall so I can't access it.  Does anybody have any insight/access? 

https://www.theinsurer.com/news/westaim-q1-profits-leap-as-it-prepares-to-exit-stephen-ways-hiig/3644.article

I'm curious as to whether there's any new scuttlebutt or if they're just assuming a HIIG exit is in the cards since they announced "unsolicited interest" about a year ago.

Parag Shah (formerly of Bridgewater) has been buying shares in the open market recently. This could simply be to satisfy a share ownership requirement and is not necessarily a bullish signal. But it does suggest that a material announcement is not imminent.

LightWhale

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Re: WED - Westaim Corporation
« Reply #28 on: May 30, 2019, 07:33:45 AM »
Is anyone attending the AGM today?

chompsterama

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Re: WED - Westaim Corporation
« Reply #29 on: July 31, 2019, 10:32:37 AM »
This is an incredibly frustrating business to watch and own.  It's proving that SOTP (almost) never work (not that I needed any additional proof!).  For two boring industries like asset management and insurance, it seems only the income statement flowering can change the perception of value in the business...or the very unlikely sale of HIIG at 1.4x+ book.  Considering HIIG is planning on going public, that's almost surely not happening.  Just a rant  :D