Q: Hi,
Having read a lot of Q&A s on both these stocks, I know you still support a Hold position and bit cautious because of tariffs drama but not too worried about the management or long term prospects of either company.
My question is this. I have GSY and understandably now I am down. I was up a while back before it trended down. However I did take the profit in PRL! (Lucky me!)
Should one sell some of GSY and buy with that money a position in PRL now? To hedge one's bet in that risky lending domain? Or add to GSY gradually and wait? If I am right in interpreting your answers, you think PRL has more potential for faster growth and rebound than GSY. Hence I am contemplating on such a move.
Many thanks in advance.
Having read a lot of Q&A s on both these stocks, I know you still support a Hold position and bit cautious because of tariffs drama but not too worried about the management or long term prospects of either company.
My question is this. I have GSY and understandably now I am down. I was up a while back before it trended down. However I did take the profit in PRL! (Lucky me!)
Should one sell some of GSY and buy with that money a position in PRL now? To hedge one's bet in that risky lending domain? Or add to GSY gradually and wait? If I am right in interpreting your answers, you think PRL has more potential for faster growth and rebound than GSY. Hence I am contemplating on such a move.
Many thanks in advance.
5i Research Answer:
PRL currently has faster growth, and it has been aggressively raising its dividend. GSY's dividend has stalled in comparison, but to be fair it did a very large hike in February. PRL is cheaper on valuation. GSY is larger and has been around a lot longer as a public company. We think PRL has good 'bounce' potential. The stock fell sharply while fundamentals were solid, and this often is a good set up. GSY has lagged, but we are not really concerned with it: it has proven itself over time. In a toss up, for a growth investor and one comfortable with risk, we would side with PRL today. But, we do not see any particular reason why both cannot be owned for sector diversity.