Investment Q&A

Q: I hold Goeasy and am down over 40% on my purchase price. I am thinking of getting out. Do you have anything in mind as a suitable proxy. Thank you.

Q: I an down about 25% on gsy. Would you suggest to hold, sell or buy more on this down turn? And do you think that the company may reduce their dividends as well? Would appreciate your advise here. Thank you

Q: Goeasy has always traded at a reduced multiple due to the risk of the government lowering the maximum legal interest rate. Now that has happened, do you see a multiple expansion opportunity once GSY has proven they can still grow the business? Also, do you still see it as a dividend growth story?

Q: Hello,

Has management responded to your inquiry about Canada drives? Can you please shed some light on where you sit with go easy at these levels .

Q: I'm still up 12% even after this second day of dropping. GSY is in the growth section of my portfolio. Is it still worth holding? Do you think there is a rebound here? I was wondering about a switch to something with a little more umph, I have a few of the big banks, or I'd look at ZWB. Can you suggest something? Thanks.

Q: Morning, GSY makes us a total of 3.4% (or did lol) of my portfolio with half in a non registered account. My thinking is sentiment will be bad for a while and the true impact of the budget will need to be assessed. I'm contemplating holding the GSY in the registered accounts while tax loss harvesting the non registered. If it were your account would you do it differently?

Rhetorical question - how much of yesterdays selling was leaked information from the budget vs the potential $41M loan loss?... I'm feeling like the latter was a key driver in the 9% fall yesterday.

Q: In a couple of previous questions you have mentioned that the drop in GSY's share price on Thursday was due to the Canada Drive news. There is something else that needs to be considered. I saw a post on Stockhouse on Thursday at 2:35 p.m., well before the close and the budget news, indicating there was a rumour the federal budget was going to include an interest rate ceiling of 35% and this was why the stock price was going down. The poster stated the rumour was likely true as it had apparently come from an unnamed staffer. Obviously the rumour WAS true as the exact ceiling % was mentioned.

Seems to me this is the main reason why GSY's stock price dropped so much on Thursday - some people had this inside info and were selling the stock as a result. I know there is a lot of nonsense on Stockhouse, but occasionally you get something important.

In any event, after reading the press release that GSY put out last night, do you have any change in your opinion on the desirability of GSY as an investment? Does the stock still look cheap?

Q: Is the decision by Trudeau to reduce interest rates on loans offered by GoEasy really bad for the business?

Q: In a response to a prior question you mentioned that due the recent outcome of Canada Drives, that it could have a 2.5% impact to market cap and 15% to 2023 estimated EPS for Goeasy. How can there be such a big difference between these two %s? You would think that they would have a bigger correlation. Thanks.

Q: Hi Team,
Any idea why Gsy is getting punished today so bad? I can’t seem to find any news on it to account for a 7-8% drop today. Thanks

Shane

Q: There have been some some media reports today citing a federal source who says today's budget will include plans to go after predatory lending. I've seen some speculative chatter suggesting this could mean lowering the maximum interest charge rate possible from 60% to 30%. In your most recent report on GSY you state they originate loans up to $45,000 with rates between 19.9% and 46.9%. Is it known how much of their loan book is above that speculative 30% threshold, and how much of an impact might this have on their overall business if this 30% ceiling were to occur?

Q: hi, can you discuss GSY in regards 1195407 BC Ltd filing in BC Supreme Court pursuant to the CCAA...
cheers

Q: Risk / Reward, what do you like better here? I believe Zwk has significantly less risk with appealing short to mid term upside. Thoughts?

Q: I'm currently overweight financials. Mainly due to new positions in BN/BAM/TD. With over 21% in financial broken down as follows would you begin to trim or consider BN/BAM diverse enough not to be a financial and thus reducing the overall financials concentration to 13.5%

BNS - 2%
BAM -2%
BN - 4.5% been growing this position (ideally want it to be 6%)
EQB - 1% new position
GSY - 2.5%
JPM - 2.6%
TD - 2.21% new position
Visa - 4.23%

10 year investment horizon.

Your thoughts are appreciated

Don

Q: Dear 5i,
In regards to the March 21, article written by Michael Huynh titled Canadian Financial Companies with Robust Balance Sheets. I believe the GICS sub-industry classification for GSY is "Consumer Finance". Assuming GSY was included in the screening process. Can you help explain where GSY did not meet your screening criteria. I believe in general your team likes this stock.
thanks

Q: In a response a couple of weeks ago you briefly compared GSY and OMF. You indicated that you "consider these two solid for those interested in playing the debt theme". Do you feel any differently now.?
Since neither company rely on customer deposits, is there any reason why OMF has fallen so much more in the last week other than being in the financial business in the US?
How much has the risk changed for investors, compared to GSY? With the big drop in price and corresponding rise in yield  (11.8%) do you see OMF more compelling to start a position mostly for income and some growth? 
Lastly, which other high quality small to mid size US companies in other sectors would you consider if the goal was mostly income?

Q: In a prior question you mentioned that Goeasy's "funding may slow down or cost more if investors get nervous in general, but it can't really experience a 'run' on current funding like a small bank can". I am trying to understand why Goeasy can't experience a 'run'. What is different with this company? You had also mentioned that it has a different funding base. Thank You.

Q: What small to mid cap companies can you recommend that have been beaten up due to market conditions but have a high chance of success long term? Looking at a potential entry point this year with the prospect of beating out the returns of larger cap names that may be in a similar situation. Could you also give a brief thought on the risk/reward of this approach as well. Thanks very much.

Q: Do you have any concerns for GSY considering the current banking situation. Thanks for your response.

Q: Are there any small to mid-cap companies that have been beaten up over the past year that you really like the longer term outlook for?

Thanks