Go Easy earnings shoot up but needs a New third Division

         On May7 Go Easy reported it's financial results.Revenues were up by 22% but e.p.s was up by 53% and net income by a whopping 65%.Go Easy calls these  record  results.For example, Scotiabank shows 2018 e.p.s at $3.97 and the P/E ratio at 12.84.But now based on Q1, e.p.s are on track to hit $5.00 per share.At present P/E levels this will move the stock price to about $63 per share.Even with a slight reduction in the P/E ratio as growth dampens this should bring the stock up to the $60 level.It's present price of $51 shows it as  considerably undervalued.

     

And Now for the Rest of the Story

This blog was not too surprised by these favorable results.Go Easy has a very successful consumer loan division.Most readers have seen their advertisement on television showing people paying bills (not Goeasy consumer products).This helps to explain how their consumer loan portfolio increased from $600 million to $879 million in Q1 2018.But one of my blogs on Website123.com suggested that Goeasy make some kind of combination with the faltering Street Capital Bank as well as with Pinetree Capital.Both are represented in the picture above.It is true that SCB has been losing money lately and will need some GSY  investment to shore up SCB finances.But Goeasy must pick and choose the functions that it will push on consumers.For example, mortgages may be considered too competetive to invest heavily in.Nevertheless Goeasy will be a successful operation with more tools to use now. 

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