Q: Comments on Goeasy pre-release adjustments to its loan portfolio, higher charge off rates etc. To me the amounts regarding car loan seemed manageable but then they are ending the share buy back program and cutting the dividend so management oblivious is taking very drastic action. Is this still investable? Would you take loss now or wait it out ? If improvements occur in 2027 as management forecasts how long do you think before stock recovers to say $125?
5i Research Answer:
We would view it as a hold here to let it settle. Management is likely ripping the band aid off here and while the dividend/repurchase news is not ideal it is also likely the right move at this stage.