Author Topic: GSY - GoEasy  (Read 9107 times)

valueinvestor

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Re: GSY - GoEasy
« Reply #20 on: August 17, 2020, 08:03:17 AM »
A valid top-down view.

From the bottom-up, I would again refer to their sales funnel, and how they target borrowers, it's hard to believe they are underwriting bad loans, in my opinion. Of course, there's a level of trust that needs to be placed on management, as this could change on a dime.

Secondly, the market is not reflecting the minority interest of their PayBright business, or again has a top-down view.

I don't think consumer credit is going away with COVID, it may increase, and my thoughts are GoEasy is structured in a way that they can capitalize, especially when competitors falter.   

To be fair, I wouldn't have invested at these prices, but when I came in - it was around 5-6x pre-covid earnings and the narrative was they couldn't survive a COVID apocalypse.


valueinvestor

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Re: GSY - GoEasy
« Reply #21 on: November 03, 2020, 09:34:16 PM »
Loan Portfolio of $1.18 billion, up 14%
Net Charge-Off Rate of 7.8%, down 540 bps
Adjusted Diluted Earnings per Share of $2.00, up 56%
Total Liquidity of $250 million, up 16%
Revenues Up Mid-Single Digits

Not sure if GoEasy was easy investment or lucky, but investors still underestimating PayBright equity investment.

valueinvestor

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Re: GSY - GoEasy
« Reply #22 on: November 19, 2020, 04:58:06 AM »
Affirm filing for IPO - what's Paybright worth?

valueinvestor

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Re: GSY - GoEasy
« Reply #23 on: January 14, 2021, 09:39:34 AM »
Well I guess we'll never know - as affirm purchased paybright and GoEasy hasn't moved at all.


valueinvestor

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Re: GSY - GoEasy
« Reply #24 on: February 09, 2021, 11:53:33 AM »
GoEasy Update:

Trades at 16x earnings, 12x next year earnings.

$114M stake in Affirm Holdings from a minority investment in PayBright.