Investment Q&A

Q: Which of the above two companies would you prefer to hold for a long term conservative investor?

Q: Greetings 5i team,
I noticed a question today asked by Tim concerning GSY and what a target price to enter a position would be. I added some shares today at about $179, which was above your suggested entry price of $170 but this purchase only raised my average cost / share to a little more than $160. In addition to the entry price, do you think that this is a good way to view such a purchase as well?
Thank you
SP

Q: May I have you opinion of the future of Fiserv given the pending lawsuit, price decline recently and its sector of the economy?
With appreciation,
Ed

Q: Have been thinking about Chris’s question Sept. 25 regarding these two companies.

So it makes sense to buy BNT because you may have better share appreciation than BN and if you don’t then you can exchange it into the higher priced BN ? Thanks. Derek.

Q: Dear 5i
PRL has been steadily going down over the last 6 months . I am beginning to lose patience with this one. Is it a hold , sell or a buy more situation ?
Thanks
Bill C

Q: if I currently own equal amounts of BN and BNT. for additional purchases why would I buy BNT? the prices for each company are virtually identical for example . I compared the price for both companies for 1 month 3 month 6 month YTD and one year and within pennies the price for both companies is the same. I look forward to your answer. thanks Richard

Q: MSTY is getting close to its 52 week low and of course showing a massive yield. What’s your assessment of the risk reward at this level?

How much if at all has the monthly dividend changed since the beginning?

Can you explain the WHY behind the consistent decline in share value?

Is it Saylor’s intention for this to be a long term stock or is this some kind of borderline legal Ponzi scheme.

Given this is still early days (presumably) for BTC I would hope he is thinking long term in terms of ensuring his credibility and that of bitcoin.

Q: Do you think GSY has a problem or is this a buying opportunity ?

Q: I have held Brookfield for 15 years. I have reviewed their investor presentation several times in the last week. With the Wealth Solutions and carried interest projected growth they forecast a 25% Distributable earnings growth is possible over the next 5 years. It looks like they have shifted gears and the next 15 years of business growth should be better than the last 15. Any comments

Q: Hi Guys Since you will get a lot of questions on the short report on Goeasy I thought this article/comment from National Bank would help members and save you some valuable time ( only make public if you think it is useful):

National Bank Financial analyst Jaeme Gloyn thinks the allegations and evidence brought by Jehoshaphat Research in a short report released Monday claiming Goeasy Ltd. (GSY-T) is manipulating their reporting to delay and avoid reporting rising delinquencies and charge-offs are “without merit.”

Accordingly, in reaction to the 9.9-per-cent drop in the Mississauga-based company’s share price on Monday as well as a post-close analyst call in which management firmly refuted the allegations, Mr. Gloyn now sees “a buying opportunity.”

“The report includes former employer interviews and former competitor executive interviews to explain how frequently and easily GSY uses tactics to delay reporting charge-offs and delinquencies,” he said. “JR argues GSY will have to start reporting higher charge-offs as these loans will inevitably need to default and be charged-off and expects this catch-up in losses to ‘devastate earnings’. The report argues its thesis on the following points: i) GSY’s change in their definition of net charge-offs, ii) rising interest receivable as a percentage of interest income, iii) lower allowance rates on stage 3 loans, iv) large shift of loans into GSY’s “low-risk” category, v) the surprise departures of former CEO, Jason Mullins and CFO, Hal Khouri."

“JR’s evidence of manipulation (Rising interest receivables, lower allowance rates on stage 3 loans and the shift in loans to the ‘low risk’ category) is explained by GSY’s rapid increase in auto loans. GSY has grown its portfolio of auto loans from $40-million in 2021 to over $1-billion today,” he said. “The key is these loans are larger and typically benefit from a lower loss given default because they are secured by the vehicles. Unlike unsecured loans that charge-off after 90 days, secured auto loans will charge-off after 180 days. As these larger auto loans become delinquent, it is reasonable to see an increase in interest receivable. Further, because these loans are secured by vehicles where confidence in recovery is higher, it is also reasonable to report a decrease in stage 3 allowances as a percentage of loans outstanding. Additionally, the risk categorization of loans is determined based on probability of default, which can change based on collections abilities. GSY enhanced their collections capabilities in 2024 which could explain the change in classification.”

The analyst concluded the evidence presented by the Florida-based firm is explained by recent growth of GSY’s secured lending platform.

“We are aware of the potential volatility that can come with rapid growth of a lending vertical as we have seen with auto lending at GSY,” he noted. “We believe management is also aware of this and is actively making investments to improve collections and underwriting. That said, this does not imply that GSY is involved in any accounting games or excessive ‘kick the can’ activity.”

Mr. Gloyn reiterated his “outperform” rating and $265 target for Goeasy shares. The average is $239.22.

Elsewhere, Scotia Capital’s Phil Hardie cut his target to $225 from $235 with a “sector perform” rating.

“The release of a short report alleging that goeasy has improperly delayed credit losses and materially unreported loan delinquencies has put near-term pressure on the stock,” he said. “We believe the central theme of the report follows a relatively well-worn path for short-sellers that target lenders during transitioning economies. The author alleges that company uses “pretend and extend” practices to avoid reporting delinquencies and uses accounting approaches that delay reporting of loan losses and other expenses.

“We don’t buy into the report’s bearish view that delayed net-charge-offs are likely to drive a significant earnings miss for 2026, or that GSY is engaged in questionable practices. Following a 10-per-cent one-day decline in the stock after the release of the report, we would not be surprised to see a near-term bounce to recover some lost ground, however we think the report will sharpen investor focus on underlying delinquency and portfolio credit performance trends and constrain near term multiple expansion. Ultimately we think the key to sustainably removing any overhang will be delivering solid results with the charge-off rate remaining in line with the targeted range with late stage delinquencies also trending down.”

Q: I'm getting mixed messages from 5i regarding EQB . In several answers you have it as recommended buy ...... But in a reply to Adam on Aug. 28/25 you make the following statement . ...... " But with some overall economic concerns continuing it is also hard to foresee a big recovery in the next several quarters as well. "

This suggests it will be dead money for a while .... Looking at your report on the company it appears that circumstances have changed . In your " Valuation " section you make the following statement .....

" Management noted that with the recent and expected easing of interest rates, EQB is seeing signs of renewed mortgage activity and strong loan growth momentum is expected going into 2025. " ...... Well that didn't happen ...... Are you planning to update that report in the near future ? ....

I own shares { in a RRIF } and am in a bit of a quandary on why I shouldn't sell in favour of greener pastures ..... So please explain to me how I should evaluate holding or selling ? .........Thanks for your terrific service .....

Q: since BNT is exchangeable into BN share for share 1. is there any point in. buying new shares of BNT when you already hold shares of BN? 2. what percent of BNT is held by BN. ? 3. could BNT separate itself from its ability to exchange into BN so it would be a stand alone wealth mgt /annuitiy/life insurance company ? thanks Richard

Q: Hello ,
Are the US banks still a good buy or are the PEs getting too high? I was thinking of an etf or JPM? Any thoughts please. Also, what is causing the renewables to surge as the etf is perking up.. Much appreciate it.

Q: Hello Peter and team, Looks like another day and another important fall in price for GSY on unusual large volume. I thought the CFO news was now old and the share price had stabilized. Was there another piece of really bad news that triggered the large decline I missed? Thanks again for your valuable insights.

Q: Are you aware of the date of the proposed share split?

Q: Not that I'm complaining, but what is with Canadian bank stocks in the last six months? I'm used to slow, plodding stocks, and they are rivalling Google for momentum. All of them are up from 23%-38% in the last six months with no sign of a slowdown. It's not like we have a booming economy.

Q: I have a large position in Bns and thinking of selling 50% of it with a nice profit
In a question today regarding TRI and the banks you said the banks may not have a lot of upside left
Regarding Bns specifically, what would you say the upside left in it at current price $88
I would like to deploy the money in another stock for a 3 year hold -suggestions? Thanks

Q: Does the interest rate may affect the Canada banks profit? Should we still keep them during this time. Many thanks.

Q: What are your thoughts on Q2 Holdings please, thanks.

Q: Hello,

Could comment on Tri.to recent slide, what is driving the drop?

Thank you