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goeasy Ltd T.GSY

Alternate Symbol(s):  EHMEF

goeasy Ltd. is a Canada-based company, which provides non-prime leasing and lending services through its easyhome, easyfinancial and LendCare brands. The Company's segments include easyfinancial and easyhome. The easyfinancial segment lends out capital in the form of unsecured and secured consumer loans to non-prime borrowers. easyfinancial’s product offering consists of unsecured and real estate secured instalment loans. The LendCare operating segment specializes in financing consumer purchases in the powersports, automotive, retail, healthcare, and home improvement categories. The easyhome segment provides leasing services for household furniture, appliances and electronics and unsecured lending products to retail consumers. Its customers can transact seamlessly through an omnichannel model that includes online and mobile platforms, over 400 locations across Canada, and point-of-sale financing offered in the retail, powersports, automotive, home improvement and healthcare verticals.


TSX:GSY - Post by User

Comment by Aarman4on Mar 01, 2021 12:54pm
117 Views
Post# 32686207

RE:explanation

RE:explanation

Respectfully fabdaq21, that is correllation, not causation.

Stock splits did not do anything to precipitate a rise in share price, The companies were climbing in value and perceived value, and had they not split, they still would've climbed to the same level. The Market Cap of the company stays the same regardless. If a company is so small that the bulk of it's investor's are retail, and the difference of $30 and $60 makes a difference to the purchasers, then fair enough, that makes sense so it doesn't make it harder for shareholder's to sell by lowering the sotck price and providing more liquidity......... However, a share split still doesn't do anything whatsoever to make the rise in value of your tradign account rise, that was done by the operations of the companies ytou owned(and the excitement of the share buying pool). That is it, that is all.

The liquidity that stock splitting adds traditionally has a "calming" effect on share prices, and reduces the highs and raises the lows, due to each shar being bought and sold now having a smalle rpercentage effect on share price movement, but still, in the end, the company has a market cap, the number of shares and share price has to do with liquidity...... I would argue that there is little to no effect on shareholder buy ins based upon buy price until it hits $100(psychological) or maybe $1000(actually becoming a pain in the butt to buy the amount of shares you want).

Cheers!


fabdaq2021 wrote: lol, well the initial stock split does absolutely nothing to the creation of wealth - it cuts the price of the shares in half (on a two for one) and doubles the shares you have - you are intitially even.  However, companies that split stocks are usually very successful companies and do so repeatedly.  The splits usually follow a pattern in that if the stock is split at $60 and its a two for one it will drive the price down to $30 and you've doubled your shares.  At this point the process starts all over again with successful companies as over time (another few years) the price goes back up to $60ish and another stock split is announced.  The Investment Reporter which is like the most successful newsletter out there always promoted stocks that did this.  Stocks like Couche-tard and in my case Petro Canada and Precision Drilling.  My example of success was with Petro Canada for example.  I'll keep it simple, bought a block one year, then another the next.  Bought at $30 and years later it went to 60ish.  They did a two for one then years later another two for one and one time a three for one.  In the end the price was always driven back up to around 60 but my initial 200 share purchase over a decade or so became 2400 shares.  The investment reporter preached this type of investing and they had a list of stocks that tended to do this over and over and over!  So without the splits in that example my shares would have had to climb to $720 a share and though not uncommon a price these days back then that would never have happened.  Stock splits used to be the rage back in the day and I think its easier as an investor to take profits as you come into more shares.  Hope this helped......and I think goeasy is a perfect candidate for such investing.    

 

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