Investment Q&A

Q: With the significant drop in valuation versus business net worth, is GSY likely a target for take-over?

Q: This is a follow up to Dennis‘s question on the number of stocks to hold in a portfolio. You have suggested that about 20 (15-25) is all that you need. This may be correct for a conservative investor, but I feel your client base is a little bit more aggressive. Hence 20 conservative stocks, and a dozen more aggressive ones. I have used your advice to help me invest in a dozen smaller or unknown companies of which some have done great, some have done well, some are treading water and some have done poorly. I have started all these at a quarter position, which has worked well over the years. My biggest problem is knowing when to trim the great stocks as a fourfold increase only brings them to a full position. A great problem to have. Thanks for your advice over the years.

Q: You have provided many insights with respect to GoEasy and its recent issues.

Given that PRL is involved in a similar credit market, do you consider PRL a Sell at this point? What is your view on PRL?

Thanks
Tim

Q: Can you rank these top ten "losers" in terms of the most recommended to dollar cost average from 1 being the best opportunity to DCA to 10 being the least recommended to, thanks.

Q: I'm thinking of moving what little money I have left in GSY over to add to PRL.
Do you see more upside in GSY or PRL and why.
I think both will survive because the demand from the credit market they serve will
exist for the long run.
Any thoughts/advice will be greatly appreciated.
John

Q: Still hung up on sell or hold GSY. At 35$ I am down 70%. I know 5I always seems to suggest that not to redeploy cash from taking a loss as a means to make up for the loss.I do not quite get that. Could you explain .Regardless if I choose to sell do you think at today's price of 4.75$ that ZDC would provide more hope for me to recover or a better alternative .Much appreciated .Larry

Q: I’ve sold out of GSY after a 5 year hold and am wondering about your feeling about lessons learned. It seemed that all the analysts were very positive and expectations were that any operating weakness would be temporary due to the company’s strong performance history.
Do you feel that investors were hoodwinked?
In retrospect could this have been foreseen?

Q: GSY was my top TFSA holding and has slid with the huge downturn. It is my understanding that the company reports in the next day or two.

I am reluctant to head for the exits as I don't understand whether holding for a few years will allow a moderate recovery or if the company could literally go out of business. Is failure a probable outcome? Target prices by analysts (I know these are NOT very reliable) are still well above current prices.

Do you think the upcoming earnings report will allow for a proper assessment of the company or can they hide / spin things in a way that holding could just brings years of pain?

TODAY, would you HOLD?

Q: Will GSY continue to pay Dividends?

Q: As per my previous question and being down 68% today and if I take the hit and move on as you eluded to with far less capital available can you recommend your top 2 or 3 picks that would justify this move ? Tks Larry

Q: Would you consider all positions in your growth portfolio still buyable today? Are there any that would make you pause if you were buying now?

Q: A note to JR re. GSY and PRL,
Thank you for the comment. I commented about the ethics of GSY last week and I regretted it afterward. It was one of those notes that is better to reflect upon that send. Your points are good and valid.
Peter

Q: With goeasy’s stock under intense pressure, I’m looking at the ownership structure: David Ingram and Don Johnson control more than a fifth of the company and have been through multiple credit cycles as long-term holders. Given Don Johnson’s reputation for financial acumen and his deep roots in the industry, is it fair to interpret their lack of selling as a signal that the underlying book value remains intact? Or do you believe the LendCare charge-offs represent a structural shift that even veteran insider conviction can't offset?

Q: Not a question but rather an observation: please don’t knock down legal regulated businesses that lend to people that can’t get loans like people with assets. I can get an interest rate that the poor people can only dream about.
Otherwise they would have to borrow from loan sharks in the underground economy.

I get enormous benefits from credit cards points but that is really on the backs of less well to do cc users.

One very well known head of state always was treated like a VIP by most banks. Was that justified? Look where that got us.

Q: Hello 5I team: Caught between a rock and a hard place with this one Feel I should have know better than to hang on so long.Now at 34$ am down 70% .So if I sell their will not be much capital left to make up for this loss any time soon.Do you feel this company will come back and a hold makes any sense in this context. Thanks Larry

Q: Just a thought, I looked at buying this years ago but didn't because it seemed to be making profits with borrowers who could not afford the loans received. Nothing illegal but not not necessarily ethical.
If a company operates in this market the leadership may at times stretch the ethical and legal limits of governance.

Q: Hi!
Warts and all, please suggest a share price for goeasy that is compelling....2-3 year hold.
Cheers,
David

Q: This is not a question, have watched what has happened with GSY over last few days and very sad to see it, I owned it since March of 2020 and was very happy with it performance, sold about half a couple years ago at over $150, was a little worried with what was happening in early to mid-Jan., this year so sold remainder Jan 20th, so happy I didn't get caught up in this situation, fell sorry for all the retail investors that have now been.

Q: Sorry another Go Easy question.

What will Go Easy’s future borrowing costs be going forward? My understanding is that they issue bonds for longer term borrowing and have a syndicate of banks for short term credit. Will this kill any prospects for recovery once the bad debts work their way through the system?

Q: What are the lessons learned on these to avoid in future on the above stocks. All of these were unfortunately full positions over many years.