Q: What is the intrinsic value of Gsy when you consider the recent crises? Based on a conservative estimate considering the write offs etc. what would you estimate the appropriate price of this stock. Assuming lendcare is less than or equal to zero. Thanks.
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Investment Q&A
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Q: Still waiting for a reply to.yesterday question but thought I would like to add this. A recent question with concerns on this disaster with suggesting that go easy has dropped 75% in the past and recovered .Do you know how long it took and would you think that go easy will survive and 115. Would be attainable? Or are the circumstances so different this time to suggest that ? Thanks Larry
Q: Sorry for another question about Go Easy , but at this point, (in a RRSP) is it still worth holding vs risks . Would you leave it settle or at this point , with such a small % of portfolio (1%)) its better just accept and sell. Would IFC be a good replacement? I’m open to other suggestions as well.
Q: Given the magnitude of this drop in value the fact that no insiders are not buying any shares to give themselves and the company any bit of credibility speaks volumes.
If there was any kind of oppurtunity here,their lack of action or some kind of press release,with some kind of explanation sure makes them look very weak.
Was this actually a pre quarter result i thought the actual results were supposed to be on March 18th according to Globeinvestor,is this accurate and can you think of anything they could possibly say that would make this look like an oppurtunity given a certain time period or just accept this as the total Calamity that it appears, still hanging on and needless to say very SOUR
If there was any kind of oppurtunity here,their lack of action or some kind of press release,with some kind of explanation sure makes them look very weak.
Was this actually a pre quarter result i thought the actual results were supposed to be on March 18th according to Globeinvestor,is this accurate and can you think of anything they could possibly say that would make this look like an oppurtunity given a certain time period or just accept this as the total Calamity that it appears, still hanging on and needless to say very SOUR
Q: I have held BN for a while, and was up nicely and now back down to a very minimal gain. This has got me looking at BAM - also down, but at least a nice dividend to soften the blow. Also, BAM is near its 12-month low (of course, might be a reason for this). Between BN and BAM, which do you think has the greater chance for gains over the next few years? If they are similar, does it make sense to move to BAM and at least receive a dividend?
Thank-you
Thank-you
Q: Since last summer BAM has steadily fallen 35% and shows no sign of reversing the negative direction of it's price chart. I would appreciate your analysis of this negative price direction of a supposedly quality company.
Thank you.
Thank you.
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Brookfield Corporation Class A Limited Voting Shares (BN $52.81)
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Brookfield Asset Management Ltd. Class A Limited Voting Shares (BAM $58.76)
Q: Is BN and/or BAM susceptible to the credit risk like private credit like black rock?
Q: Thoughts on aggressively adding at these prices ?
Q: What are your thoughts on adding coin for a long term holding?
Q: Siskinds is launching an investigation into Go Easy. Would you please advise on what you would do?
Q: Hi, I'm sure you are going to lots of GSY inquries today.
Earlier today you had mentioned GSY as a mid cap suggestion...
Mid: GSY, MDA, BDGI, CPX, X
Given the more recent news out today (after your initial reply) and that it is now down approx 45% this am, I'm assuming this might be dead money for the rest of the year and perhaps now a 'show me' story into 2027 as per their revised guidance.
What would you replace GSY with in this context of midcap pics?
Also does this most recent news/guidance change the overall rating of GSY?
Cheers,
Steve
Earlier today you had mentioned GSY as a mid cap suggestion...
Mid: GSY, MDA, BDGI, CPX, X
Given the more recent news out today (after your initial reply) and that it is now down approx 45% this am, I'm assuming this might be dead money for the rest of the year and perhaps now a 'show me' story into 2027 as per their revised guidance.
What would you replace GSY with in this context of midcap pics?
Also does this most recent news/guidance change the overall rating of GSY?
Cheers,
Steve
Q: Thanks for your comments today on GSY. Just a further concern.
We are seeing these negative events happening now. What happens to GSY's business if we go even deeper into an economic downturn ? One could argue that the economy isn't currently great now, however we've seen it get way worse in the past. GSY was down about 76% from highs (worst case) in the past. Since the Sep. '25 highs, we're closing in on that point here. Your comments on that scenario ?
We are seeing these negative events happening now. What happens to GSY's business if we go even deeper into an economic downturn ? One could argue that the economy isn't currently great now, however we've seen it get way worse in the past. GSY was down about 76% from highs (worst case) in the past. Since the Sep. '25 highs, we're closing in on that point here. Your comments on that scenario ?
Q: Sold GSY at 85 this morning. What do you think about PRL at 19? is this an industry problem as well as a GSY specific issue in your view?
Q: Given the decline in GSY today would you be being PRL today? It seems to me as if PRL is declining further due to the GSY news today.
Q: Hi, I’m still trying to wrap my head around the big news today from GSY and what may have led to this unfortunate event over the last few years.
How was this ticking bomb hidden in the company and why did analysts and auditors not see this or raise questions further? Or were they ignored? Was management hiding certain facts or was this standard practice and policies of this industry which was allowed? Other than the short seller report late last year, did analysts not dig deep enough into their lending and financials? Who do you think is responsible for this disaster and were known issues building up and just kicked down the road until now? I pulled up the short report and the news from today and asked Gemini to compare the two, here is the summary I got. Thanks for any further comments!
Based on the bombshell news release from today (March 10, 2026), it appears that the short sellers were largely correct in their fundamental assessment of the company’s accounting and credit health.
While goeasy (GSY) spent months "categorically denying" the allegations of a short-seller "attack," today's update reveals that many of the specific "smoking guns" highlighted by Jehoshaphat Research have indeed materialized as significant financial problems.
Here is a breakdown of how the today's news validates the short sellers' original thesis:
1. The "Hidden Losses" are No Longer Hidden
Short Seller Claim: goeasy was masking $300 million in delayed credit losses.
Today's Reality: goeasy announced a massive $178 million "incremental charge-off" for Q4 2025 specifically related to the LendCare business, plus a $55 million write-down of interest and fees. This essentially admits that $233 million in value they were carrying on the books was uncollectible.
2. Validation of the "Accounting Wizardry" Allegation
Short Seller Claim: The company was using "accounting wizardry" and changing definitions to hide delinquencies.
Today's Reality: The company admitted to a "correction of a historical reporting practice" at LendCare. They revealed that customer payments were being recorded as "received" when they were actually still "in the process of being settled" (and some were never collected). This artificially lowered reported delinquency rates in 2024 and 2025—exactly what the short sellers alleged.
3. The Shift in Net Charge-Off (NCO) Rates
Short Seller Claim: Reported NCO rates were artificially low and the "true" rate was closer to 15%.
Today's Reality: goeasy has raised its expected 2025 NCO rate to 12.9% and warned that it will jump to the "mid-teens" in 2026. This is a massive departure from their previous guidance and aligns almost perfectly with the short sellers' projections.
4. Admission of Governance & Risk Failures
Short Seller Claim: The rapid growth in auto/powersports loans was a "time bomb" due to poor risk management.
Today's Reality: The new CFO, Felix Wu, stated that LendCare’s growth required "more robust operational infrastructure" and "enhanced credit risk management." The company is now drastically reducing originations in those categories—a move that effectively acknowledges the short seller's warning that this growth was low-quality and dangerous.
5. Drastic "Emergency" Measures
The severity of the situation is highlighted by the "6-Point Action Plan" goeasy announced today, which reads like a crisis management manual:
Dividend Suspension: Effective immediately, the dividend is cancelled.
Guidance Withdrawal: They have withdrawn all previous three-year financial forecasts.
Covenant Breeches: The company admits it will likely breech financial covenants with its lenders and is currently operating under an "accommodation agreement" (essentially a temporary truce with banks).
Conclusion
While the short sellers may not have been right about every single technicality, their core thesis—that goeasy was overstating its asset quality, understating its losses, and using aggressive accounting to mask a deteriorating subprime portfolio—has been vindicated by today’s news.
For investors, the transition from "Buy" ratings and denials to a total suspension of the dividend and a $233 million write-down marks a total collapse of management's previous narrative.
How was this ticking bomb hidden in the company and why did analysts and auditors not see this or raise questions further? Or were they ignored? Was management hiding certain facts or was this standard practice and policies of this industry which was allowed? Other than the short seller report late last year, did analysts not dig deep enough into their lending and financials? Who do you think is responsible for this disaster and were known issues building up and just kicked down the road until now? I pulled up the short report and the news from today and asked Gemini to compare the two, here is the summary I got. Thanks for any further comments!
Based on the bombshell news release from today (March 10, 2026), it appears that the short sellers were largely correct in their fundamental assessment of the company’s accounting and credit health.
While goeasy (GSY) spent months "categorically denying" the allegations of a short-seller "attack," today's update reveals that many of the specific "smoking guns" highlighted by Jehoshaphat Research have indeed materialized as significant financial problems.
Here is a breakdown of how the today's news validates the short sellers' original thesis:
1. The "Hidden Losses" are No Longer Hidden
Short Seller Claim: goeasy was masking $300 million in delayed credit losses.
Today's Reality: goeasy announced a massive $178 million "incremental charge-off" for Q4 2025 specifically related to the LendCare business, plus a $55 million write-down of interest and fees. This essentially admits that $233 million in value they were carrying on the books was uncollectible.
2. Validation of the "Accounting Wizardry" Allegation
Short Seller Claim: The company was using "accounting wizardry" and changing definitions to hide delinquencies.
Today's Reality: The company admitted to a "correction of a historical reporting practice" at LendCare. They revealed that customer payments were being recorded as "received" when they were actually still "in the process of being settled" (and some were never collected). This artificially lowered reported delinquency rates in 2024 and 2025—exactly what the short sellers alleged.
3. The Shift in Net Charge-Off (NCO) Rates
Short Seller Claim: Reported NCO rates were artificially low and the "true" rate was closer to 15%.
Today's Reality: goeasy has raised its expected 2025 NCO rate to 12.9% and warned that it will jump to the "mid-teens" in 2026. This is a massive departure from their previous guidance and aligns almost perfectly with the short sellers' projections.
4. Admission of Governance & Risk Failures
Short Seller Claim: The rapid growth in auto/powersports loans was a "time bomb" due to poor risk management.
Today's Reality: The new CFO, Felix Wu, stated that LendCare’s growth required "more robust operational infrastructure" and "enhanced credit risk management." The company is now drastically reducing originations in those categories—a move that effectively acknowledges the short seller's warning that this growth was low-quality and dangerous.
5. Drastic "Emergency" Measures
The severity of the situation is highlighted by the "6-Point Action Plan" goeasy announced today, which reads like a crisis management manual:
Dividend Suspension: Effective immediately, the dividend is cancelled.
Guidance Withdrawal: They have withdrawn all previous three-year financial forecasts.
Covenant Breeches: The company admits it will likely breech financial covenants with its lenders and is currently operating under an "accommodation agreement" (essentially a temporary truce with banks).
Conclusion
While the short sellers may not have been right about every single technicality, their core thesis—that goeasy was overstating its asset quality, understating its losses, and using aggressive accounting to mask a deteriorating subprime portfolio—has been vindicated by today’s news.
For investors, the transition from "Buy" ratings and denials to a total suspension of the dividend and a $233 million write-down marks a total collapse of management's previous narrative.
Q: What action will be taken in the growth portfolio in view of the recent announcement withdrawing guidance and suspending dividend? What is behind this announcement?
Q: Hi Everyone!!
With Goeasy running into significant issues, would Propel be quick to follow?
Cheers,
Tamara
With Goeasy running into significant issues, would Propel be quick to follow?
Cheers,
Tamara
Q: GSY is down 50% so far today, they cut their dividend, and they withdrew their expectations for 2026. Do you expect similar problems for PRL ? How similar are their businesses?.
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Brookfield Corporation Class A Limited Voting Shares (BN $52.81)
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Brookfield Wealth Solutions Ltd. Class A Exchangeable Limited Voting Shares (BNT $55.63)
Q: Has there been any material share buybacks in Brookfield Corp.during this steep decline
Q: Hi,
Down by quite a bit on these two about 35% in my TFSA. Asking what you would do knowing weights are personal.
Would you add to one or both?
Would you sell one or both?
Would you have them in equal weight? Right now I'm at 60% GLXY and 40% HOOD between the two with both combined at 3.5% of my whole portfolio. If not, what would be your suggestion.
Would appreciate your view. Thanks
Down by quite a bit on these two about 35% in my TFSA. Asking what you would do knowing weights are personal.
Would you add to one or both?
Would you sell one or both?
Would you have them in equal weight? Right now I'm at 60% GLXY and 40% HOOD between the two with both combined at 3.5% of my whole portfolio. If not, what would be your suggestion.
Would appreciate your view. Thanks