Q: Could you provide an update on insider buying for Goeasy? In the past they seemed to personally get behind the stock.
Also, what does your gut say about the security of that 5.5% dividend? Are they over-leveraged or is there another key metric that could indicate things are a bit shakey? Thank you
Also, what does your gut say about the security of that 5.5% dividend? Are they over-leveraged or is there another key metric that could indicate things are a bit shakey? Thank you
5i Research Answer:
There has been essentially no activity in six weeks (just some granting of rights). Insiders own 5%. In the past six months, there has been minor net selling of shares (4.33%, note percent, not percentage points). As a lender it does have a high degree of debt, but turnover and credit losses are the key factors here. We do not see the dividend at risk unless this year shows a massive deterioration in fundamentals (possible, of course, but not expected).