Investment Q&A

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?

Q: Siskinds is launching an investigation into Go Easy. Would you please advise on what you would do?

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

Q: Could you translate your answer to JR on GSY from " business speak " to " plain english " for me ? Specifically define what a " Charge off " is ? .....What the charge off was ? Why it is significant ? { the 14% number } .... Why are they expected to decline in 2027 ? ..... What a " breach of covenants " is ? And what are the breach of covenants are in GSY's case ? And why is this significant ? And what the the statement " it has signed agreements " to provide relief means ? ........ And what all this has to do with Lendcare ? .....Thanks for your terrific service ....

{ On the upside . thank you for your previous answer to me regarding position size . By cutting my position in half this has been a lot less painful } ...

Q: Thanks for your comments today on GSY. Just a further concern.

We are seeing these negative events happening now. What happens to GSY's business if we go even deeper into an economic downturn ? One could argue that the economy isn't currently great now, however we've seen it get way worse in the past. GSY was down about 76% from highs (worst case) in the past. Since the Sep. '25 highs, we're closing in on that point here. Your comments on that scenario ?

Q: Sold GSY at 85 this morning. What do you think about PRL at 19? is this an industry problem as well as a GSY specific issue in your view?

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.

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

Q: Do you see anything in the news report that could be considered fradulant or managment reporting anything improperly that could cause lawsuits (this will be for sure) and the stock to fall further? Maybe regulatory issues? Looking to possibly exit if there is further downside and risk to the company or hold, but I'm assuming this company will be the penalty box for awhile so there is opportunity cost while I can invest in other higher quality companies. Thanks!

Q: Hello Team,
I saw and read with some apprehension the news as well as the questions asked by members and your answers earlier. Does it not justify the short seller's comments that were published about a few months ago and send GSY also in a tail spin? It had something to do with under reporting some automotive losses, if I remember correctly. In that case would you think it could even get worse and it may be time to take one's losses and leave a sinking ship?
Thanks,
Adel