John
GSY has been weak on concern on growth, primarily, as higher-yielding loans run off and are replaced with lower yield loans (as interest rates have fallen). Last year yields were 34% and this year may be much lower. The CEO also stepped down in December due to a health matter and this also worried investor. GSY has also been the subject of some short sellers. But we do not view credit quality as an issue. In the last quarter the charge off rate fell. Allowance for losses rose, but only marginally (8.13% from 7.92%). Loan applications rose 22%. Concerns about a recession and rate caps are also weighing on the stock. But, at 7.8x earnings and a yield of 4.53%, certainly some of these worries are priced in. It is not risk-free, but this is not the company's first downturn. Historically, it has recovered well. But, it is a 'value' stock in a 'go go' market, and not exciting enough for some investors.