Investment Q&A

Q: Are you aware of any reason why GSY popped so much of late, especially in the last two days? Usually this kind of jump only occurs if there is a potential takeover bid (just guessing here). Thanks.

Q: My question is in regard of the new financing that GSY just took:
(-- goeasy Ltd. (TSX: GSY) (“goeasy” or the “Company”), one of Canada’s leading non-prime consumer lenders, is pleased to announce that it closed its previously announced offering of US$550 million aggregate principal amount of senior unsecured notes due 2028 (the “Notes”). As announced on November 14, 2023, in connection with the offering of the Notes, goeasy also entered into a currency swap agreement (the “Currency Swap”) to reduce the Canadian dollar equivalent cost of borrowing on the Notes to 8.79% per annum. Before giving effect to the Currency Swap, the coupon on the Notes is 9.25% per annum. goeasy will use the proceeds from the sale of the Notes to fund the redemption of all of its outstanding 5.375% senior unsecured notes due 2024 (the “2024 Notes”).)

It seems to me that the cost of borrowing almost doubles that of the notes due for redemption. The amount is also considerable. Is it material to the forecast estimated EPS for 2024?

GoEasy is on a tear these days and I wonder if I just add to an already 4% position size or wait and let go. Buy more on weakness or buy now or stay put?

Thanks in advance and I know position size is personnal but GoEasy will continue to grow hence position size is still very reasonnable.

Q: I have seen several analysts commenting recently on how undervalued small cap stocks are compared to larger cap stocks. Some saying we are at the cheapest levels they have ever seen for small caps. If you were to put together a portfolio of 10-12 Canadian small cap stocks intending to benefit from a return to more typical valuations, which stocks would you include? Not thinking about highest risk types, like early phase biotech, exploration stage mining companies, but rather, for high quality, profitable, growing businesses.

Q: I own a couple of banks, SLF and MA in my financial allocation. Thinking of adding GSY or BN. I know there different in size, but GSY probably offers more growth.

Would you be comfortable adding GSY with a 3-5 year time commitment, or is BN the better choice?

Q: I bought GSY at its peak. Is it time to dollar cost average now or would you wait for the price to drop more?

How do you see the stock price move if interest rates stay stable until mid 2024?

Would you recommend different stocks which pay 3-5% dividend with room to grow 50% over the next 12 - 18 months,?

Q: I know you like all of the above for a TFSA - so do I - but need to raise some cash and am struggling with what to sell - is there one you would sell first? or maybe trim 2?
Thanks,
Terry

put as private but make public if you wish

Q: Hi team,
What do you think of Gsy’s note offering priced at 9.25%. This is a shocker rate to me. Is this why the stock is down on a great market day today ? Despite this, Mr. Mullens did add that this was already priced in their future outlook in regards to growth targets. If all their debt is going to go from 5%-9% range though this sounds concerning does it not ?

Thanks ,
Shane

Q: The information I have, they have beat their forecast in the last 3 quarters by a wide margin. If this is the case, who sets the forecast, if it is the company, do the low ball their forecast. Also, Yahoo Finance shows a 3% dividend, is that paid quarterly.

Q: Which companies in the 5i Growth portfolio have the most consecutive quarters of revenue growth? Please list top three in order.
Thanks!

Q: Comments on earnings , Seems to be an unappreciated company

Q: When the "take it private" chatter was happening I ended up with too large of a DND position which I have been (too) patient with as I understand that the macro economics involved are challenging and until that changes there is little to do but wait. But it is getting a little crazy at this point (even dead cats should bounce).

If I wanted to hedge my bet and sell some are there few other beat up names that you feel have a similar or better recovery potential?

Q: I just visited your subscription website. 5i rightfully touts the outstanding returns on these BEST PERFORMERS since inception.

I have benefited immensely from those picks BUT bailed at the wrong time and now only hold GSY.

Would you still recommend Csu,byd and syz at current prices or are there new potential multi baggers that you prefer

Thanks for your help…. and looking forward to seeing share prices increase and have the patience and wisdom…and courage to hold on ……

Q: I need to sell either KXS or GSY in non-reg account to use up some capital losses. Which is better to sell right now?

Q: I am trying to construct a barbell style Canadian portfolio.Can you name 5-6 growth names you favour and 5-6 defensive names that I might be able to build this with ?

Q: Hi there,

I am still holding these in my TFSA after significant drop in value. Do you recommend holding or exiting these names? Thanks.

Shyam

Q: Can you list five companies in your growth portfolio that you would add to at this time.

Thanks Steve

Q: Hello not to scare some investors but can you explain what happened to conseco in 2002-2003 period and why goeasy is not in the same situation now with interest rates going up fast ? Thanks !

Q: The debt to equity of the company is 220% is this not a concern with the higher interest rates?

Q: Hi team
I am disappointed for the pull back and I have held it for awile
wonder if it is a decent move to sell 50% and buy GSY
are they in the same risk category and both undervalued?
both pays a dividend which is nice

thanks
Michael

Q: Good day guys ..
small and mid cap stocks getting crushed here.. what names are appealing to u right now for 3-5 year holds .
thx
Mark