Q: I see that GSY stock to a big drop today. The stock is now reaching a very strong support level at about $100. Is this now a buying opportunity? Is it better to wait for the Q4 results?
Thanks John.
Thanks John.
5i Research Answer:
The fear trade is strong with this one and some loan companies have recently reported weak results (see previous answers). GSY is now at 6x earnings with a 5.39% dividend. We are not expecting bad results, but of course cannot predict the market reaction. We think it is buyable for small cap investors in the $105 range. In the current state of the markets we do not think there is a big risk in waiting for the quarter, though. These days even great results do not necessarily result in a stock pop. We do not see the dividend at risk right now.