What are your thoughts on today’s drop in Goeasy (GSY)?

I removed Goeasy from the Bull List last year when it hit $205 due to uncertainty about the economy moving forward and results starting to show a bit of cracks in terms of provisions.

I did end up taking a lot of criticism for this removal, but it looks to be the right move.

Growth is starting to slow, earnings are declining, and provisions are rising. These alternative lenders are often the first ones to feel the heat from a poor economy.

Long-term, I think this company will survive and thrive. However, over the short-term there are a lot of uncertainties here. The company is currently working with a lot of its borrowers on payment help plans. These can only extend out so far until they need to start reporting them delinquent loans.