Q: With the significant drop in valuation versus business net worth, is GSY likely a target for take-over?
5i Research Answer:
Yes and no; certainly its offices and brand names are valuable. Like with Home Capital, a buyer might be interested in quicky gaining market share by buying GSY. Certainly it is cheap. That being said, buyers would be concerned about the massive (negative) reversal in loan losses, and thus would need to do a friendly deal in order to get a full look at the books and see if there are any more bombs about to go off.