Q: Good morning Team, Regarding the consequences of Trumps threats I read the following (in the Globe): 'Our most sensitive name to Canadian economy and labour markets is Goeasy Ltd' What are your thoughts about that quote in particular and the most exposed Canadian companies in general? Thank you, Adel
5i Research Answer:
GSY is not likely to be directly impacted by tariffs, but it can have sensistivity to the Canadian economy. However, in other recessions the company has managed to still grow its businesses. Cash strapped consumers can be positive to its loan operations. Earnings increased during the Covid pandemic. EPS did fall in 2008 and 2009 during the financial crisis, but it remained highly profitable still.