Q: What do you think about this company? They just announced their prepaid card programs and teaming up with Digital Commerce Bank. Is this company kind of similar to GoEasy, maybe even a take-over candidate?
5i Research Answer:
There is some overlap in the business, certainly. It is likely too small for now for GSY to be interested, but as revenue grows it is always possible. The CEO was at GSY for a decade and is listed as one of the founders. Market cap is $75M. It has no analysts and thus no estimates, but revenue should approach $70M+ this year. Insiders own 20%. Risks are high in the sector and with its small size, but one to watch, we think. EBITDA has improved nicely and debt is declining.