Propel Holdings (PRL.TO)

Likes it. Got caught up in the GSY short-selling, though PRL didn't do anything wrong. Niche product, with AI to determine viability of loans. Cheap at 7x PE for 2027, with 32% growth. Risky. Own in a non-registered account, not an RRSP. You can add.

Metrics and underlying performance have been amazing. Painted with the same brush as the sub-prime lending companies, though it's not warranted. Percentage change of growth started to slow, but that won't be sustained. Continues to expand in US, recent UK acquisition. On his radar for a time to get back in.

They do sub-prime loans, but also proprietary AI credit score system that other lenders use. Their dividend growth is excellent and trades at a cheap 7x PE. But credit losses popped up which impacted earnings, and there was a sympathy trade with GoEasy which hurt PRL. The downturn is starting to flatline and hopefully bounces off $25-28.

Very bullish. Great company, top management team. K-shaped economy means less disposable income for some, which increases the total addressable market for PRL at a very fast clip. Taking higher-credit-quality clients. Misunderstood and underappreciated.

Like Goeasy, PRL got caught up in the alternative financing sell-off. Long-term, this space looks good. It's less competitive here than in the U.S. and should do well. Unlike past cycles, this one isn't passing its benefits to poorer consumers. 

Not a huge fan of alternative lenders. Canadian investment landscape has had some blowups, such as GSY. You have to be really careful in the space. Put your $$ elsewhere.

The price is down lately due to some concerns around the US consumer since it lends to low quality credit consumers. It has had some tough quarters in the back half of 2025 but came through and had a good first quarter a couple of weeks ago. He just started a position at around $20 in their income fund since he sees a a strong dividend growth profile. It has been raising its dividend by 7 to 8% each quarter.. It has been getting third party capital so is using large investments from outside investors to fund its loans. Growth should accelerate in the back half of the year, Trades at a very low multiple, 6X P/E.

High quality, really well run. Contrary to what many investors think, very little in common with GSY. Selloff is buying opportunity. Private credit concerns do not apply here.

Be very cautious about the low- to mid-end Canadian consumer and their ability to pay. 

If you like the space, take a look at APO with its diversified asset base. You don't need to own sub-prime Canada to earn decent ROE.

Often lumped in with GSY, so it took a hit. Credit loss provisions popping up, and fears are warranted. However, likes it for the long term because so much exposure is US-based. Canadian exposure is quite small. Recent UK acquisition bolstering earnings. Proprietary AI credit score is leased out. Momentum weak. He’d wait for a breakout to a higher high, perhaps around $28.

The space has been under pressure. It's too small cap for her, but Raymond James does cover it and has a price target of ~$32 (70% implied upside). Valuation of 9/10. Be cautious of over-allocation, but not a bad time to add. Stock's been cut in half. Market's clearly worried about something that analysts aren't.

Digital alternative to payday lenders. Q4 was a little bit ugly, PCL spiked to nearly 57%. Growth story is still real. Revenue up over 20% last year, record expansion. Risk is sub-prime lending. High risk/reward.

Taken down unfairly. Whippy stock. Not widely held, somewhat illiquid. Delinquencies can go up in bad economies, and we have some headwinds. Bad news is more than reflected in the stock. Remember that even the stalwart names can have huge moves.

Likes it longer term. Trades at 6x PE with 30% growth. Plug your nose and keep it.

Peers have seen delinquency rates rising, but PRL's done good job managing that using AI. Continues to drive numbers higher, yet stock's challenged. Valuation got ahead of itself, but now it makes more sense. Earnings should continue to grow. He's watching it.

Q4 was pretty bad. Quality of loan book is the issue, with reserves going up and then being written off. Minefield. Wouldn't add more until you see loan-loss provisions stabilize. Canada might have some economic risk.