GoEasy

GoEasy  -  GSY  .  TSX

Company website: http://www.goeasy.com/

Morningstar: http://www.goeasy.com/

This is what I thought in November 2016 when I first bought the stock...

GoEasy is an alternative financing company with a long track record of steady growth in their legacy rent to own business. Four years ago they launched headfirst into the consumer financing business and have grown at breakneck speed since then, almost tripling their EPS in the past 5 years. They operate a chain of Easy Financial storefronts across the country that offer short term loans to higher credit risk customers. Their plan is to expand their loan book by an additional 50% over the next two years. If they are successful, this should translate into continued strong earnings growth. With a p:e of less than 10 at my initial purchase price of $24.70, this kind of growth should also translate into a significantly higher share price.

Their performance during a recession is unproven. Management has studied their own experience with their rent-to-own chain during the last recession and has studied the performance of other sub-prime lenders during this period and feel that they are well equipped to deal with a recession when and if it arrives but until they can demonstrate this, this clearly remains a risk for any prospective stockholders.

What's changed since I made my first purchase of this stock? Follow the ongoing story in the posts below...

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