goeasy (GSY-T)

All lenders can be regulated more. GSY boils down to how well they can vet a lender so they get their loans paid back. These companies have their place and can be worth buying, BUT he is not buying any banks or lenders. Better to sit on cash and collect a guaranteed yield.

Considering the earnings impact of the new loan rates should be in the 7% to 11% range, the 20% drop (two days) to us seems a bit much. 
But the loss on Canada Drives is also a factor. GSY still expects growth, and we largely expect to still meet its three-year growth plans. But, there is still macro risk, and sentiment may take a while to recover here. 
Based on the company's adaptability in other challenges of the past 15 years, we are confident they will steer out of this. 
GSY's comments on the move hurting smaller competitors 'more' are valid, in our view. It could pick up some market share. 
At 6X earnings now and with a 4.2% yield that likely is not in any jeopardy, we think it is worth staying the course for now. We have not heard back yet with a specific response from the company. 
The company is the one that determines whether an event is material.  
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 GSY has much shorter liabilities (loans) than banks, and a different funding base. 
Its funding may slow down or cost more if investors get nervous in general, but it can't really experience a 'run' on current funding like a small bank can. 
It is not risk-free and the sector in general is under siege, but we have no reason to expect any additional issues here.  
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Subprime lender to high risk customers.
Stock price has performed well.
Risky business in current economic environment (rising interest rates).
Current share price low.
Would hold off from buying.
Difficult to predict future of company.

Owns shares in the company and believes is very well run.
Good for long term shareholders.
Long term lending business that also operates online.
$2.6 billion loan book - up from $10 million; 10 years ago.
~25% profit and revenue growth the past 10 years.
Lots of room for growth.
Higher interest rates a risk, but believes will able to adjust.
 

Has owned shares in the past, but not currently. Company operates in consumer lending and automobile lending. Higher interest rates and economic slowdown will be tough on business (people less likely to pay back loans). Loan provisions have been well managed. Not many auto-loan competitors in the Canadian market (growing rapidly).

Has owned shares in the past, but not currently. Company operates in consumer lending and automobile lending. Higher interest rates and economic slowdown will be tough on business (people less likely to pay back loans). Loan provisions have been well managed. Not many auto-loan competitors in the Canadian market (growing rapidly).