Investment Q&A

Q: Hello 5I:

Would you start positions in any of the pipelines at this time and, if so, in what order and price?

With respect to GSY, what do you think it will take to get the stock moving upwards and what would a good entry price be?

Thank you for the great advice!

Q: This stock keeps on falling everyday. First you had said $170 would be a good price to get in. It kept on falling then you said $165. Now we are at almost $160.
In your experience, what has to happen for this to turn around?
A news or an upgrade?
thanks

Q: Big banks TD and RY trim and add to GSY and PRL. Is it time to begin ---- wait ----or not at all?

Q: What would be your top 5 , small/mid cap stocks in Canada today? What would be good entry points?

Thanks
Tim

Q: Goeasy has paid and increased dividends consistently for some 10 years. The payout ratios appear to be very reasonable and the growth has been strong. This seems like an enticing stock to carry in a dividend orientated portfolio. 5i has it in the growth portfolio. Why not in your income portfolio as well?

Just curious, Stephen S

Q: In an earlier question, you said let GSY settle down and it is a buy at $170. Well here we are and is this a screaming buy?
Thanks

Q: Are you comfortable buying PNG at current price? If not, what would be your target to buy? Looking to start a position.

There has been a couple questions lately regarding GSY and PRL. In one question, you answer PRL over GSY. And then the next day, you indicate GSY over PRL. Which do you consider a better buy for growth, and why? I think also you mentioned there was going to be a follow up report on PRL. Is that still the case?

Thanks!

Q: I am up on all the above listed stocks however down on AC, LMN, BCE, WELL, LLY, my question is should i sell some losers as well as some winners to shore up CSU (presently own 9 shares in my TSFA. Do you sees this as once in a lifetime opportunity to load up on arguably the best managed company in Canada i am leaning towards selling WMT and FFH in the winners column (both consist of 8% each of my portfolio what losers would you sell if wanted more exposure to CSU....your thought on this strategy please ps am 74 yrs old and a conserved investor

Q: I need to raise some capital. Please advise in what order you would sell these equities. Are there some you would not sell? I am more of a income investor.

Q: Hello Team,

Looking at adding some funds to CAN stocks I already own, are you able to rank these in order from 1 to 14 based on a 3-4 year hold, I'm not worried about company size or industry. Thanks!

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: Please state which of these would be a buy at today's prices and if not, where you would target entering a new position. Also please rank based on potential for 12 year gains from today's (or tomorrow if you reply Thursday).

Q: I am constructing a dividend growth portfolio with the intention of holding all positions for the longterm, holding the following equities in equal weight (likely only one of MRU or L - or should I include both?), with 80% of the portfolio consisting of these individual equities and 20% in the ETF VGG.

Would there be any in this list you would not include, and are there other Canadian equities you would consider for this list? Is this the appropriate number of positions for such a portfolio. Please deduct multiple credits as required, thank you.

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

Q: I have $10k to invest and I want to buy some stocks (Canadian or CDR) that are underpriced.

I was thinking to invest in TRI, MDA, TFII, TVK and GSY. Maybe Amzn.

For a 3 year hold, how would you rank these stocks? Any other suggestions.

Q: I already own CSU and GSY at a Full Position, but I like to buy things on sale;)

I assume the short position report might hurt GSY for a bit, but if fundamentals are good it should bounce back in short order.

As with CSU, I don't think I would ever bet against it.

I don't need to own more of either, but when good companies move like this, I think there is a good opportunity to make 10-20% on a rebound.

I know that is not good long term strategy, but in this circumstances like this, is it a okay strategy to try and catch the bounce back or is there to much risk.

I would rebalance after the bounce if it comes in short order, but also okay if it becomes a longer term hold.

Q: I am thinking of selling BIP.UN; held in a TFSA where growth is something of a goal. It has not done much for some time and I have good sized positions in other Brookfield entities. What is your current outlook for BIP.UN…worth holding or time to move on? Possible replacements could be GSY or PRL; if there is a move, which of those 2 would you favour? Many thanks for your excellent service.

Q: These stocks are all losing ground lately in my portfolio. Please reply in what order and at what price you would add to them I want to ensure I add valve at this point;

Also should i add to my holding in GDXJ? or start a position a silver stock (please recommend several in order of preference ) same recommendation for US bank ETF....Thanks

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: 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.