Investment Q&A

Q: I have owned shares of GSY for a number of years. Despite what I thought were very positive quarterly results and a strong outlook, GSY shares have taken a steep drop in the last few weeks. I noticed that insiders have made 35 buys (and no sells) totalling several million dollars in the last two weeks. I would think this is very significant news especially given that the President said on the conference call said that he did not feel that the company had credit quality issues (which seems to be a concern flagged by analysts). In previous conference calls, I have always found the President to be very transparent. Am I missing something here? If management uses their own money to buy millions of dollars of the stock, is this a strong signal that the stock is undervalued?
If you agree, is there any site you can go to which identifies the recent buying by management of the company stock, and presents the information in a table format?
Also, the Globe and Mail often does an article highlighting insider buys. I have not seen the GSY purchases identified, yet, they highlight much lesser insider buys. Any idea why? Is the data on the 5i website more current than other sources?

Thank you again for this wonderful service!

Q: Hello Peter,

First off, great job on BNN yesterday! Your comments helped reinforce on focusing on the long term and not quarterly results. Just to recap your theme, I have listed the companies with let's say "quarterly miss" , however, with a market over reaction to the downside. Can you add or delete other companies that fit in this category?

Thank-you for being in our investment corner.
Angelo

Q: Hi Guys, my above holdings got wacked lately and was wondering if there is anything going on, from the above list should I sell anything besides WEED, are the institutions selling these companies because they think there is more to the downside? These are long term holdings are all up except for COV and KXS which I just bought before the tumble, not one of my best moves.

Thanks
Chicken Little

Q: I'm looking for a straightly growth stock for the next two years. What would be your preference between GSY and SHOP, or you have a even better one (or ones) than these two. Thanks.

Q: desjardins in keeping goeasy as a buy, said it noticed and i quote some credit deterioration in its portfolio, what exactly does that mean, does it mean its loan portfolio is taking on bigger risks that is had previously, i thought gsy customers were always very high risk, thats what makes gsy so profitable and gives it ,its incredible return on capital.and how can desjardins see this, i looked and could not see anything. dave

Q: Goeasy results looked great as usual but the stock is down more than 10% as I write this. What is the market not liking in the latest report? Is this stock a screaming buy now or stay away until it settles down?
Thanks for great service.
Rob

Q: Hi,
In what order would you choose the listed companies to sell for tax loss harvesting.
And would you hesitate to re-purchase any of these in 30 days?
And would now be a good time to sell them? Or would it be better to wait a week or two.
Thanks,
Mike

Q: Why the pullback today on GSY? Thank You.

Q: Your thoughts on GSY recent quarter? This seems to be an extremely well run company...
• 34th consecutive quarter of same store sales growth
• 69th consecutive quarters of positive net income
• Compound annual growth in diluted earnings per share of 37.0% since 2001

Looking at the outlook for 2019 and 2020, revenue growth drops from (26% - 28%) in 2018, to (20% - 22%) in 2019 and (14 - 16%) in 2022 (they do note ROE will increase each year). Is this a concern? or is it just the reality of a company getting older or are they just being conservative. Last years Q3 2017 outlook was (16% ‐ 18% for 2018) (14% ‐ 16% in 2019) and (10% ‐ 12% in 2020) so they certainly beat 2018 expectations and have increased 2019 and 2020 since last years outlook.

Q: Dear 5i
Which of the following stocks would you add to vs hold/sell ; ALGN ,GRUB , HD , and GSY .
Thanks
Bill C

Q: when do you cry uncle on tsgi, i started nibbling at 30. now
26, if your thesis is correct then this stock is beyond cheap.
55 to 26 , makes no sense.
and gsy not quite the same as it is still up on the year, but beyond cheap.
so would you be addng here dave

Q: Can I have your analysis of the short report- it seems to raise some
concerns re regulation and loan loss recognition.

Q: You have mentioned on two occasions that it has had a short report. Who is responsible for this report. Unlike the SHOP and other short reports, this was not publicized.

Q: i am concerned about the above 2 stocks, they are thin traders especially covalon.
in covalons case you are the only one following it, so when markets sell off a lot of investors panic and head for the exits.
with goeasy it trades a little more on a daily basis but it has just been killed lately, even though it is up on the year and their earnings announcements surprise to the upside it has gotten slaughtered,maybe again small investors are heading for the exits with their 25 shares, i am being sarcastic but i think your membership moves markets especially in these 2 . can you comment. dave

Q: as interest rates increase, i would think this would be good for goeasy as traditional lenders become more cautious, as an alternative lender this should help their business, but last couple of days stock got killed, and is selling way below the current financing, it still seems very cheap to me, could you comment. dave

Q: Why GSY is dropping today?

Q: Would the stock price of GSY drop if the yield curve flattens? If so, would this be a serious correction? Would all companies in the financial sector be affected ? Thank you.

Q: I have had for years. If I sell, can you recommend a replacement? Thoughts?

Q: Hi 5i,
Thanks to your recommendation I am currently at a double with gsy. I was looking for your outlook with this company going forward from these levels. I know you have previously said it was still cheap? Do you see the SP continuing to rise nicely over the next 12 months? The main reason I am asking is I am considering trimming my position and buying some CRM (Salesforce). Would you consider this an ok move? Or do you see gsy share price climbing as much or better than CRM possibly will over the next 12 months? Thanks for your opinion.

Q: hi Peter I am seeking medium growth over say a 3 to 5year time frame in your universe of favourite stocks do you have any companies that currently trade at a P/E ratio of 20x or less the 2019 earnings forecast? if so the names would be greatly appreciated thanks Richard