Whats up with GSY.TO Goeasy

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From multiple sources this was a solid buy so I went in at just over $150. Since then down about 18% in just a couple weeks or less. I know markets are down, financial included but only slightly so what else is contributing to this fall and is this the time to dolla cost down or sit back and see where it all settles out?

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Asked on March 10, 2022 9:10 am
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Hey there,

Nothing in terms of performance. Goeasy is notably much more volatile than your traditional large cap financial stock. As such, it will be prone to outsized gains (and losses) depending on market sentiment. This stock has a beta of 2.2, which means it is twice as volatile as the markets.

Personally, I'm not the biggest fan of investing in these types of markets since they are incredibly volatile. I own GSY and at this point, I'm just sitting back and waiting to see how this all unfolds. That may mean one misses the bottom, but I'm usually ok with that. That being said, at only 8 times earnings the company is looking pretty attractive here and is trading well below historical averages. Ycharts has it begged at a perfect 10 on value and trading at a 38% discount to historical averages.

Important part, the recent downtrend has nothing to do with goeasy's execution which continues to be rock solid.

Mat

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Posted by Mathieu Litalien
Answered on March 10, 2022 4:10 pm