goeasy (GSY-T)

Still likes it. Now expanding into credit cards. Over last 10 years, EPS has gone from $2 to $20. Returned 25% annually to investors over time, including dividends. One of the best-performing stocks in Canada. Volatile name, and you have to have the stomach to hold it through the cycle. Extremely cheap at 7x PE.

Whenever people get worried about the economy, they tend to get worried about the non-prime lenders because of unemployment spiking. But when you get into a tough economy, that's actually the best time to buy these names. Banks tighten credit, and better-quality borrowers slip down to lenders like GSY.

50% of its business is non-prime, unsecured lending. Great job helping people to restore their credit. Can reprice loans pretty quickly, in a matter of 2-3 quarters -- and that explains why they haven't had big losses over the years. This ability also reduces their exposure in an economic downturn. Banks are now turning away borrowers, and GSY can pick them up.

Tremendous compounder. Has faith they'll get through this. The misconceptions on credit are creating a volatile stock price.

See comments on Propel Holdings, too. This stock has done well over time, but investors have been selling this recently. The new CEO has 20 years' experience in retail banking, very good. The valuation is cheaper now, while the dividend has been there a long time and continue to raise it. Good long term, but one day he thinks some company will buy it out.

Wonderful company. Fantastic operator, very good risk manager. Delinquencies on credit cards, rising bankruptcies, and overall economy suggest more credit defaults. This will hit the non-prime customers of GSY more. But that could be your opportunity to enter the stock, as it'll benefit on the other side when the economy starts to expand.

One of the largest holdings in the portfolio. Unexpected resignation of the CEO has been hard on the business. Recent Q3 earnings were strong. New CEO search are expected to be announced soon. Cheap valuation at current price. Will continue to own. 

Recent results were quite strong. Overhangs include respected CEO retiring and concerns about economy. Some regulatory risk on maximum interest charged. Overall, great compounder. Don't focus on short-term stock moves.

Current valuation finally lets him present it as a Top Pick idea. Expanding into credit cards. Sold off last year on CEO stepping down, but former (and excellent) CEO is helping in the interim. Balance sheet in great shape. Grows 20% a year, year in and year out. Trades at 7x PE, almost a distressed multiple, great entry point. Yield is 2.7%.

(Analysts’ price target is $235.53)

Keep holding if you have it. It is performing at the operating level and should outperform in 2025. It has been going sideways and is ready to break out.

We do not really have a specific reason here. It has had no company news in more than a month. Investors may be shifting to other hotter sectors. Trump has made comments about capping interest rates. The last quarter was not a blow-out. It's been more than a year since the last dividend hike. There is a CEO transition. At less than 10X earnings, we are not particularly concerned here. The company has adapted and thrived in all sorts of challenges and economic backdrops. We think 'now' is attractive, and at $150 (close to its prior low) very attractive. 
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One of the best compounders in Canada. Tremendous management team, confident they'll find a capable CEO. Very strong operations. Organic growth rate has been good. Undemanding valuation. Well-developed risk management. Good hold for years to come.

Alternative lender. Headwind in Canada because of interest rate it's allowed to charge on loans, but those issues are mostly in the past. Instead, he's recently been buying PRL.

The banks lending Canadian lending, but forces like immigration favour companies like this. But their CEO left suddenly. It's been a nice bet for 15 as rates declined, but now now. Wait and see. Don't sell, but it could be a buy. It will be choppy.