goeasy Ltd T.GSY

Instalment loans

[Torontojay]

You can now borrow up to 75k from EasyFinancial which has grown considerably over the years. I remember distinctly when this used to be $15k several years ago and it may have been even lower than that at one point. 

To put into perspective, MoneyMart now offers loans up to $15k but they are several years behind. Fairstone which is their biggest competitor now offers loans up to $50k. 

The competitive advantage Goeasy has over MoneyMart and the others is the lower cost of financing which takes years to build that reputation or trust with a financial lender. Not to mention the data analytics and industry knowledge that they've developed over the years will keep them ahead of the competition for many more years. Finally, their total addressable market in Canada is huge with plenty of more market opportunities specifically in the auto loans which would be loans secured by the vehicle itself. 

As a shareholder for well over 5 years now, I would say the biggest risk to Goeasy would be any legislative changes to the maximum cap rate which currently sits at 60%. If you notice their yield on average loans has reduced over the years with more collateralized loans which is a smart move on their part. I believe they're in a good position to grow sustainably even if future cap rates were to lower. 

Strong buy.

[porksniffer]

Total massacre here, down almost 10% on no news. Looks like there is either strict regulations that will be released in tomorrow's budget and people are in the know or chargeoffs are set to soar when we go into recession, is we aren't already in a recession. Either way some people have some info.

[extremerisk]

I am a buyer today at 52 week lows here.  Only metric that matters is employment and we know that their is a scramble to hire lower priced help.  That's where most goeasy customers work.  Check out some of their past investor presentations on this.  Average borrower owns no real estate and are in lower paid jobs.  Credit challenges customers.  Raymond James and

[porksniffer]

Everyone knows this already. The big question is why is this down $12 on news? if regulation is coming down tomorrow afternoon we are heading lower...

[extremerisk]

If that was happening you would be trading 5x or more average volumes which did not happen.  Gsy is not in any index funds and has small float so is subject to unusual swings down.  I have been in and out of this stock for about 6 years now and lesson learned is I traded it too often and would have been much better to just hold it.  Would have saved lots in commissions.  

[Defiance2050]

Good points on average person doesnt own real estate. Goeasy home provides 2nds at higher than industry pricing. If March 2020 didn't put a serious damper in the company's performance anything upcoming will be a blip. Goeasy might have high rates but is far from predatory. Payday loans for sure push it, 300 for 10 type promos are lower than the normal payday loan. Yearly APR on regular pay

[Torontojay]

If you've been an investor long enough you will remember that back during the oil crisis in 2014/15 in Alberta there business actually did better. There is no reason to panic and every reason to buy on a day of weakness.