GoEasy has Safety and More Products

      GoEasy Financial is working on remaking itself.It is keeping it's delinquency rate down and secured lending up.At the same time this blog has recommended that it make some combination or even an outright acquisition of Street Capital Bank-a small fairly new Tier1 bank.There has been an acquisition of Street Capital Bank by an unknown company called RFA.It is not known whether GoEasy is connected directly or indirectly with RFA.But if it is then GoEasy will have a number of new products to offer it's customers.If handled correctly and slowly this could increase revenues dramatically.But of course some of their new banking products will meet with competition in the small Canadian market.
    First Quarter Highlights
   GoEasy is a consumer loan specialist and so their loan portfoloio increased by 46% over 2018 to $602 million.At the same time revenue increased by 22% to $140 million.More importantly e.p.s. increased by 53% or from $.77 to $1.18 per share.
      Safety First
    They also enhanced their plan to lend in Quebec which will give them further growth.GoEasy also tells it's shareholders that secured lending increased from 4% in 2018 to 12% in Q1 2019.This strategy and others has kept their delinquency rate down to 4.4% which is consistent with 2018.In fact, the CEO says that "1 in 3 Easy Financial customers graduated to prime credit and 60% increased their credit score within 12 months of borrowing from us."GSY also takes care of shareholders by repurchasing 283,500 shares at an average price of $41.75 per share.
      Larger Market                    

   GoEasy has a quite successful market niche and as can be  seen from above they have improved this market over time.This alone should allow earnings to grow by 40 to 60% for a number of years.But GoEasy has decided to gradually increase it's banking products.If this is done slowly and carefully it should strengthen the company even further.A Go Easy credit card and line of credit (over $15,000) may not be too far away.But Go Easy mortgages may likely never appear.Look for annual e.p.s. of $.50 to $5.00 for 2019 and this should allow the price to gradually move towards $58-$60.                https://www.otpp.com/homehttps://www.info.com/serp?q=cpp%20canada%20pension%20plan&segment=info.0419&s1aid=8515556047&s1cid=1628428016&s1agid=57491951010&s1kid=kwd-300114431469&utm_source=adwords&gclid=Cj0KCQjwyLDpBRCxARIsAEENsrL8xz00HWInfPMwKPQKt5Srbq4VGKkznQGq8KUkTn1zTbIX-T3s4T8aAmZ1EALw_wcB