Q: Hello
Did you have time to listen to the earnings call for GOEASY? A fairly dramatic mid day turn around for the SP.
Thank you
Did you have time to listen to the earnings call for GOEASY? A fairly dramatic mid day turn around for the SP.
Thank you
5i Research Answer:
Three items in the call 'might' have caused some to worry, but we do not think they are material. 1) The company noted lower compensation expenses, which is good, but it did say this was partly due to GSY not hitting 'internal' targets (which are different of course from street estimates). 2) It is tightening up on credit a bit, which could see charge offs tick up or originations tick down. 3) There was discussion on the 35% interest rate cap. This is old news, but listeners were reminded that this is getting closer to being implemented. For now, GSY can charge up to 47% or so, but this drops to 35% with regulations starting. But its exposure here is minimal, and this news is really more than a year old now.