Canadian Money Forum banner

GoEasy (GSY)

8K views 66 replies 12 participants last post by  james4beach 
Nobody talking about this stock?

Multiples are some of the cheapest on the TSX, other fundamentals are good (operating margin, return on equity, etc.).

Earnings are growing fast. The stock itself is growing very fast. It's even paying some growing dividends for those who like dividends.

I feel pretty confident about the growth of this one. But I don't like when I'm confident, so I want to be challenged by other opinions.

I know that many people don't like their business model.

Any opinion?
 
Would buy again on any big pullback, but I typically wait for 40-50% corrections.
If picking small cap stocks is your thing, could be a good one!
I already own it and I was thinking that I should've made it a bigger holding. I like it a lot.

But since it's very volatile and as @doctrine said and as I was also thinking, it's better to wait for a pull back.

First time I bought it, it was on April 15 (the date I started buying stocks for the first time of the year 2020) but I was being cautious so I took only a very small position which gained +159% so far. Then in June I decided to take a bigger position and that bigger position is now at +75% so my overall is +86%, but I don't plan buying more at this point since we're at all-time high.
 
Seems odd that you said you love their business model and immediately listed all the reasons why most people say they don't like their business model. :p

I'd question the ethics, true. If the government takes action to decrease the legal maximum interest on a loan, they would be hit bad, true. Or maybe they are already at the limit of legal and that could be a risk, true. About defaults, I think their business model is already running smoothly with that risk.
 
I think there's a sure thing though. As their business grows, it'll draw more attention and their business will be perceived negatively which will hurt them. They won't be allowed to continue growing at 40% CAGR and outpace banks. (I believe it would take at least two decades though, even at 40% CAGR)
 
Yes I'm still holding GSY.TO for the long term and I'm pretty sure it'll be an amazing investment.

I'm just wondering if such bad press can affect them if it gets on a political momentum or if such article pops once in a while and is forgotten as fast as it appeared.
 
GSY reports incredible results, increases dividend by 47% (it's been constantly increasing their dividend by such huge percentages), it's currently rallying and its short ratio is 9.23. What's not to like?
 
My initial purchase of GSY during the crash just hit 4X (+300%).
 
Looking at some of the stuff they sell... If someone is stupid enough (or rich enough that they don't care) to buy a "gaming chair" worth $300 for $12/week for 104 weeks, then I have no empathy and I'm happy those people are contributing to the valuation of my GSY shares currently running more than +300% in a year. That's just money going from the stupid to the wise. Darwin's natural selection. Meanwhile I'm making $100k a year, yet I'm buying a desk chair $30 at IKEA for my work-from-home setup, and I bought my desk $25 on Marketplace.

Some people have sad stories, but some are just plain stupid.
 
Did you keep it? I got a 2X out of GSY last year, but have sold and moved most of that into oil (which has also doubled).
The position I bought in mid-April 2020 is currently at +326%. And I'm overall at +210% with the other (bigger) position I took a bit later. I'm still holding long.
 
Awesome! Just beware, this is going to be a volatile sucker. I had to reject it from my own portfolio because it failed my volatility screening criteria.

For example it could easily drop 40% and still remain in a technical uptrend.
Yes, definitely.
 
I've touched a 5X (+400%) today on the first position that I took on this stock in April 2020, 16 months ago. Wow. My highest return so far. Sure, it's easy because I bought it during the dip of a flash crash.

(So that I don't look like I'm just bragging about the good picks, my worst pick is currently at -62% after 8 months. But let's just say that I currently have 5 picks at -40% or worse and 4 picks at +200% or better and overall my XIRR is currently more than 50%)
 
New all time high. My first position from April 2020 is reaching 6X (+500%).

Momentum plays are tough because I know it'll crash at some point.

I've noticed that AVDV (Avantis International Small Cap Value ETF) is holding GSY.TO as part of that Small Cap Value ETF, yet it shouldn't be considered value anymore, it's more like growth at the moment, but I'm pretty sure they keep holding for the momentum. I guess they've picked it cheap (value) and now they hold it through momentum, which is a sound strategy in my opinion. I'll be curious to know when will they sell. Sure thing, I'll still be holding the bag.
 
That's ironic. I understand that people question the ethics of a company like GoEasy.

Meanwhile...

 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top