Q: Hi!
Warts and all, please suggest a share price for goeasy that is compelling....2-3 year hold.
Cheers,
David
Warts and all, please suggest a share price for goeasy that is compelling....2-3 year hold.
Cheers,
David
5i Research Answer:
It is a tough price to recommend; if the company fails to fix its covenant issue and credit issue, there could still be significant downside. In 'credit' scenarios, losses can wipe out the equity in a company fairly quickly, and with a covenant breach creditors have power to make things difficult for the company. With so much uncertainty, it is impossible to say ($XX) is a good price or ($XY) is a bad price. With the risk and the (now) tiny size of the company we would prefer to sit on the sidelines here and look at prices each day in relation to company news or events.