Q: Greetings 5i, I know that Sylogist is not high on your list right now although in the past 5i has been favourable toward the company. However, can you please provide your analysis of and opinion on the ongoing shareholder activism. Is PenderFund a credible entity? Is OneMove a credible entity? Neither one? If you were a shareholder what side of this battle would you land on and why? Thank you.
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Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: Is this recent ipo worth investing in at the current price?
Q: LQDA This company was recommended on BNN. Your opinion of this stock as a possible buy.
Thanks. Cheers
Thanks. Cheers
Q: Hi, I'm sure you are going to lots of GSY inquries today.
Earlier today you had mentioned GSY as a mid cap suggestion...
Mid: GSY, MDA, BDGI, CPX, X
Given the more recent news out today (after your initial reply) and that it is now down approx 45% this am, I'm assuming this might be dead money for the rest of the year and perhaps now a 'show me' story into 2027 as per their revised guidance.
What would you replace GSY with in this context of midcap pics?
Also does this most recent news/guidance change the overall rating of GSY?
Cheers,
Steve
Earlier today you had mentioned GSY as a mid cap suggestion...
Mid: GSY, MDA, BDGI, CPX, X
Given the more recent news out today (after your initial reply) and that it is now down approx 45% this am, I'm assuming this might be dead money for the rest of the year and perhaps now a 'show me' story into 2027 as per their revised guidance.
What would you replace GSY with in this context of midcap pics?
Also does this most recent news/guidance change the overall rating of GSY?
Cheers,
Steve
Q: When do they next report? What is expected? Stock has been very strong. What factors are playing to this? What might derail the upward movement?
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Q: Seeking to diversify away from Industrials and Tech stocks in my TFSA, as well as too much CAD. I have followed the mantra of putting primarily small to medium cap stocks in it. What would you be your favorite growth stock in order of preference (top 5) that would be purchased in the next week or so?
Q: Given the decline in GSY today would you be being PRL today? It seems to me as if PRL is declining further due to the GSY news today.
Q: What are your thoughts on E.TO during this macro environment. Business is set to spend less and looking to generate income this fiscal year. Thank you.
Q: Thoughts on this stock? Looks like the management team is really good. What do you think of balance sheet, growth, valuation etc. Would you buy?
Q: Hi, I’m still trying to wrap my head around the big news today from GSY and what may have led to this unfortunate event over the last few years.
How was this ticking bomb hidden in the company and why did analysts and auditors not see this or raise questions further? Or were they ignored? Was management hiding certain facts or was this standard practice and policies of this industry which was allowed? Other than the short seller report late last year, did analysts not dig deep enough into their lending and financials? Who do you think is responsible for this disaster and were known issues building up and just kicked down the road until now? I pulled up the short report and the news from today and asked Gemini to compare the two, here is the summary I got. Thanks for any further comments!
Based on the bombshell news release from today (March 10, 2026), it appears that the short sellers were largely correct in their fundamental assessment of the company’s accounting and credit health.
While goeasy (GSY) spent months "categorically denying" the allegations of a short-seller "attack," today's update reveals that many of the specific "smoking guns" highlighted by Jehoshaphat Research have indeed materialized as significant financial problems.
Here is a breakdown of how the today's news validates the short sellers' original thesis:
1. The "Hidden Losses" are No Longer Hidden
Short Seller Claim: goeasy was masking $300 million in delayed credit losses.
Today's Reality: goeasy announced a massive $178 million "incremental charge-off" for Q4 2025 specifically related to the LendCare business, plus a $55 million write-down of interest and fees. This essentially admits that $233 million in value they were carrying on the books was uncollectible.
2. Validation of the "Accounting Wizardry" Allegation
Short Seller Claim: The company was using "accounting wizardry" and changing definitions to hide delinquencies.
Today's Reality: The company admitted to a "correction of a historical reporting practice" at LendCare. They revealed that customer payments were being recorded as "received" when they were actually still "in the process of being settled" (and some were never collected). This artificially lowered reported delinquency rates in 2024 and 2025—exactly what the short sellers alleged.
3. The Shift in Net Charge-Off (NCO) Rates
Short Seller Claim: Reported NCO rates were artificially low and the "true" rate was closer to 15%.
Today's Reality: goeasy has raised its expected 2025 NCO rate to 12.9% and warned that it will jump to the "mid-teens" in 2026. This is a massive departure from their previous guidance and aligns almost perfectly with the short sellers' projections.
4. Admission of Governance & Risk Failures
Short Seller Claim: The rapid growth in auto/powersports loans was a "time bomb" due to poor risk management.
Today's Reality: The new CFO, Felix Wu, stated that LendCare’s growth required "more robust operational infrastructure" and "enhanced credit risk management." The company is now drastically reducing originations in those categories—a move that effectively acknowledges the short seller's warning that this growth was low-quality and dangerous.
5. Drastic "Emergency" Measures
The severity of the situation is highlighted by the "6-Point Action Plan" goeasy announced today, which reads like a crisis management manual:
Dividend Suspension: Effective immediately, the dividend is cancelled.
Guidance Withdrawal: They have withdrawn all previous three-year financial forecasts.
Covenant Breeches: The company admits it will likely breech financial covenants with its lenders and is currently operating under an "accommodation agreement" (essentially a temporary truce with banks).
Conclusion
While the short sellers may not have been right about every single technicality, their core thesis—that goeasy was overstating its asset quality, understating its losses, and using aggressive accounting to mask a deteriorating subprime portfolio—has been vindicated by today’s news.
For investors, the transition from "Buy" ratings and denials to a total suspension of the dividend and a $233 million write-down marks a total collapse of management's previous narrative.
How was this ticking bomb hidden in the company and why did analysts and auditors not see this or raise questions further? Or were they ignored? Was management hiding certain facts or was this standard practice and policies of this industry which was allowed? Other than the short seller report late last year, did analysts not dig deep enough into their lending and financials? Who do you think is responsible for this disaster and were known issues building up and just kicked down the road until now? I pulled up the short report and the news from today and asked Gemini to compare the two, here is the summary I got. Thanks for any further comments!
Based on the bombshell news release from today (March 10, 2026), it appears that the short sellers were largely correct in their fundamental assessment of the company’s accounting and credit health.
While goeasy (GSY) spent months "categorically denying" the allegations of a short-seller "attack," today's update reveals that many of the specific "smoking guns" highlighted by Jehoshaphat Research have indeed materialized as significant financial problems.
Here is a breakdown of how the today's news validates the short sellers' original thesis:
1. The "Hidden Losses" are No Longer Hidden
Short Seller Claim: goeasy was masking $300 million in delayed credit losses.
Today's Reality: goeasy announced a massive $178 million "incremental charge-off" for Q4 2025 specifically related to the LendCare business, plus a $55 million write-down of interest and fees. This essentially admits that $233 million in value they were carrying on the books was uncollectible.
2. Validation of the "Accounting Wizardry" Allegation
Short Seller Claim: The company was using "accounting wizardry" and changing definitions to hide delinquencies.
Today's Reality: The company admitted to a "correction of a historical reporting practice" at LendCare. They revealed that customer payments were being recorded as "received" when they were actually still "in the process of being settled" (and some were never collected). This artificially lowered reported delinquency rates in 2024 and 2025—exactly what the short sellers alleged.
3. The Shift in Net Charge-Off (NCO) Rates
Short Seller Claim: Reported NCO rates were artificially low and the "true" rate was closer to 15%.
Today's Reality: goeasy has raised its expected 2025 NCO rate to 12.9% and warned that it will jump to the "mid-teens" in 2026. This is a massive departure from their previous guidance and aligns almost perfectly with the short sellers' projections.
4. Admission of Governance & Risk Failures
Short Seller Claim: The rapid growth in auto/powersports loans was a "time bomb" due to poor risk management.
Today's Reality: The new CFO, Felix Wu, stated that LendCare’s growth required "more robust operational infrastructure" and "enhanced credit risk management." The company is now drastically reducing originations in those categories—a move that effectively acknowledges the short seller's warning that this growth was low-quality and dangerous.
5. Drastic "Emergency" Measures
The severity of the situation is highlighted by the "6-Point Action Plan" goeasy announced today, which reads like a crisis management manual:
Dividend Suspension: Effective immediately, the dividend is cancelled.
Guidance Withdrawal: They have withdrawn all previous three-year financial forecasts.
Covenant Breeches: The company admits it will likely breech financial covenants with its lenders and is currently operating under an "accommodation agreement" (essentially a temporary truce with banks).
Conclusion
While the short sellers may not have been right about every single technicality, their core thesis—that goeasy was overstating its asset quality, understating its losses, and using aggressive accounting to mask a deteriorating subprime portfolio—has been vindicated by today’s news.
For investors, the transition from "Buy" ratings and denials to a total suspension of the dividend and a $233 million write-down marks a total collapse of management's previous narrative.
Q: What action will be taken in the growth portfolio in view of the recent announcement withdrawing guidance and suspending dividend? What is behind this announcement?
Q: Hi Everyone!!
With Goeasy running into significant issues, would Propel be quick to follow?
Cheers,
Tamara
With Goeasy running into significant issues, would Propel be quick to follow?
Cheers,
Tamara
Q: Alaris reported Q4 results yesterday and they were mixed. Although they recently increased the dividend by 9%, and reported increased revenues in Q4, distributable csh flow was down significantly. They give reasons for that, but I am left wondering how genuine they are. Are you worried about the reduced cash flow or are you ok with their explanation? i have a full position and a nice profit in it, but i am wondering if I should reduce my holding. Is it a buy, hold or should I reduce my position?
Q: GSY is down 50% so far today, they cut their dividend, and they withdrew their expectations for 2026. Do you expect similar problems for PRL ? How similar are their businesses?.
Q: Could you provide comments on their quarter. What metrics are more important to watch when evaluating their quarterly Financials?
Q: What are your thoughts for the future of Hydrograph Clean Power Inc.? It seems to have had a meteoric rise lately. Would you buy in now or is it too late?
Q: So what are your thoughts on Blue Lagoon? They now have a hard to get mining licence in BC and have started mining and toll milling 100 tons per day? It is a large property with potential exploration upside.
Q: what do you think about the new quarterly report? I was watching it, looking for signs to jump in. But I was quite disappointed they eliminated the dividend - should one infer that they are expecting some problems ahead?
Q: Hello 5i,
I appreciate your thoughts on why nexg.ca is down about 25% over the past five days. Thank you .
I appreciate your thoughts on why nexg.ca is down about 25% over the past five days. Thank you .
Q: Based on responses to previous questions on PNG's acquisitions, I'm trying to understand the dynamics of what might happen to the stock price going forward. The closing of the new share issue at $8.50 should close around March 12 and if I have it right, the shares will be active when the deal closes, expected in the April - June timeframe. The new issue has brought the share price down to the issue price as you previously indicated it could. Once the issue closes this week, is the weight lifted from the stock price and could it start to react positively or negatively to the deal? It seems the market likes the deal so is it reasonable to assume the share price might start recovering the 75 cents it lost starting after issue close? I realize there are no absolute rules as to what might/will happen.