Investment Q&A

Q: A merger is in process. Would you be able to comment on the merger?

Q: I have good tech exposure in my portfolio through GOOGL, MSFT, NVDA, SOXX, XIT and market exposure through VCN, WXM, and XEQT.
I would like to know your suggestions for the above mentioned ETF's for a time frame of 2-5 Years.

Q: How would you compare these two companies for growth and safety.?
Thank you

Q: Hi, I’m looking for 2 ETF’s suggestions, that is mostly out of Canada, as all my stocks are on the TSX. ( RY,ENB,BN,CSU,etc.) Looking at a mix of U.S. and other countries. Retired so has to be somewhat conservative with a 2%+ dividend while I wait. Could be a balanced etf for a little growth and safety. I was looking at TGRO, as an example, but maybe it is too much risk? your thoughts, thanks

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: would you be comfortable buying the stock at its current price and do you see much up side

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: Which of Dol or Shop do you think offer the best return over the next 3 to 5 years?

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: 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: ZDC has been drifting lower the past month. Is the fact they raised money a contributing factor? Is the story still solid for the future? What do you see for ZDC over the next 6-12 months? Is this an opportunity to fill out a position?

Q: Do you have any preference re these balanced all-in-ones?

Q: Recently we have seen many blue chip stocks that had done really well pull back.

Companies like RBC, TD, BN, SHOP, MFC, CNR, CP, JPM, GOOG, MSFT, BRK, and others…

What are your favourite five Canadian and US large cap names that have pulled back recently? Would you be a buyer today or would you wait until the market settles a little?

Thanks
Tim

Q: forgot to ask, why are certain companies such as CLS, TOU, HPS.A, etc. not included in the market summary reports?

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

Q: My MU.TO CDRs split today with 1 for 5. Did I miss the announcement? Thanks! Austin

Q: Comments on Goeasy pre-release adjustments to its loan portfolio, higher charge off rates etc. To me the amounts regarding car loan seemed manageable but then they are ending the share buy back program and cutting the dividend so management oblivious is taking very drastic action. Is this still investable? Would you take loss now or wait it out ? If improvements occur in 2027 as management forecasts how long do you think before stock recovers to say $125?

Q: Hi 5i
Is there an existential threat to the company based on the latest news? The market appears to be in a bad mood... Nearly 50% down from the looks of it...
Now off to find the news.....