Investment Q&A

Q: Would you consider all positions in your growth portfolio still buyable today? Are there any that would make you pause if you were buying now?

Q: A note to JR re. GSY and PRL,
Thank you for the comment. I commented about the ethics of GSY last week and I regretted it afterward. It was one of those notes that is better to reflect upon that send. Your points are good and valid.
Peter

Q: With goeasy’s stock under intense pressure, I’m looking at the ownership structure: David Ingram and Don Johnson control more than a fifth of the company and have been through multiple credit cycles as long-term holders. Given Don Johnson’s reputation for financial acumen and his deep roots in the industry, is it fair to interpret their lack of selling as a signal that the underlying book value remains intact? Or do you believe the LendCare charge-offs represent a structural shift that even veteran insider conviction can't offset?

Q: Not a question but rather an observation: please don’t knock down legal regulated businesses that lend to people that can’t get loans like people with assets. I can get an interest rate that the poor people can only dream about.
Otherwise they would have to borrow from loan sharks in the underground economy.

I get enormous benefits from credit cards points but that is really on the backs of less well to do cc users.

One very well known head of state always was treated like a VIP by most banks. Was that justified? Look where that got us.

Q: Hello 5I team: Caught between a rock and a hard place with this one Feel I should have know better than to hang on so long.Now at 34$ am down 70% .So if I sell their will not be much capital left to make up for this loss any time soon.Do you feel this company will come back and a hold makes any sense in this context. Thanks Larry

Q: Just a thought, I looked at buying this years ago but didn't because it seemed to be making profits with borrowers who could not afford the loans received. Nothing illegal but not not necessarily ethical.
If a company operates in this market the leadership may at times stretch the ethical and legal limits of governance.

Q: Hi!
Warts and all, please suggest a share price for goeasy that is compelling....2-3 year hold.
Cheers,
David

Q: This is not a question, have watched what has happened with GSY over last few days and very sad to see it, I owned it since March of 2020 and was very happy with it performance, sold about half a couple years ago at over $150, was a little worried with what was happening in early to mid-Jan., this year so sold remainder Jan 20th, so happy I didn't get caught up in this situation, fell sorry for all the retail investors that have now been.

Q: Sorry another Go Easy question.

What will Go Easy’s future borrowing costs be going forward? My understanding is that they issue bonds for longer term borrowing and have a syndicate of banks for short term credit. Will this kill any prospects for recovery once the bad debts work their way through the system?

Q: What are the lessons learned on these to avoid in future on the above stocks. All of these were unfortunately full positions over many years.

Q: Would you buy GSY today? Assume you have a 5 year window for growth before retirement.

Q: Hi Team,
After selling gsy into yesterday’s bad news…any suggestions on where investors like me should invest to “get our money back”? Tough question …would need a double. I did put some funds into Tri yesterday on the dip. If Tri gets back to old highs at some point that would be a double. Is this a fair bet? Any other suggestions ? Tough question I know and realize can’t tell the future but looking for best bets here for names that might potentially produce a double over the next couple years or so?

On a side note regarding gsy…very disappointed in the company that I was holding a high position in for a long time. It seems to be lendcare was a bad acquisition. And now looking in that short report seems 100% correct …even down to the exact 300million range of charge offs. It’s also obvious in my opinion that it’s likely why Mullen left, and shortly after the new ceo. I don’t believe health reasons as cited was the issue. Same can be said for the ceo. I assume these guys knowing and not reporting to investors until now is a crime or no ? Any chance of getting any money back in likely upcoming lawsuits? I know …doubtful ; This was a tough pill to swallow as I lost 45k on this dip. Was probably holding more than I should have. This was a gut moving event for me and my family.

Thanks

Shane

Q: I presume a 331 Million dollar charge-off seriously threatens the prospects for growth : I believe the company is only worth $550 Million. `
Still, 5i gives it a C+ . dunno why .
Although I have previously lost 100% in an investment before (GTAT) , this is the worst hit dollar wise that I have ever incurred .
By the chart, I presume some investors had an advance hint of this and 50% of my holdings were in my TFSA .

I expect GSY's price to be plunging down again tomorrow ... Is it advisable to sell one's entire position ?

Q: As a long term investor of Goeasy I am not very impressed with the trouble that Goeasy has got themselves in, but am glad to see they appear to be setting the record straight now.
I guess I'm fortunate to still be up about 300% but having been up 1200% at times it still hurts. (fortunately I did take money of the table at times).
My question is what due diligents does 5I do when "Reporting" on a company beyond what the Company reports?
Thank You
john

Q: What is the intrinsic value of Gsy when you consider the recent crises? Based on a conservative estimate considering the write offs etc. what would you estimate the appropriate price of this stock. Assuming lendcare is less than or equal to zero. Thanks.

Q: Still waiting for a reply to.yesterday question but thought I would like to add this. A recent question with concerns on this disaster with suggesting that go easy has dropped 75% in the past and recovered .Do you know how long it took and would you think that go easy will survive and 115. Would be attainable? Or are the circumstances so different this time to suggest that ? Thanks Larry

Q: Sorry for another question about Go Easy , but at this point, (in a RRSP) is it still worth holding vs risks . Would you leave it settle or at this point , with such a small % of portfolio (1%)) its better just accept and sell. Would IFC be a good replacement? I’m open to other suggestions as well.

Q: Given the magnitude of this drop in value the fact that no insiders are not buying any shares to give themselves and the company any bit of credibility speaks volumes.
If there was any kind of oppurtunity here,their lack of action or some kind of press release,with some kind of explanation sure makes them look very weak.
Was this actually a pre quarter result i thought the actual results were supposed to be on March 18th according to Globeinvestor,is this accurate and can you think of anything they could possibly say that would make this look like an oppurtunity given a certain time period or just accept this as the total Calamity that it appears, still hanging on and needless to say very SOUR

Q: Hello Team, Can you please rank the above companies in order of what you think will give the best returns over the next couple of years. Thanks.

Q: Would you say goeasy is a quality business on sale right now?

It is clear to me that this is a manufactured share price collapse for the purpose of gain to those in the know.


Would you suggest 10 Canadian blue chip type companies misvalued right now...with a view to generational wealth?