Past Workathon Blog Predictions on Go Easy Financial

 In the past, my blogs have been based on the change shown in the present quarter made in the subject company from the last quarter and the past year.This blog will look at predictions made in Workathon and Blogdaleupsome blogs which are both a part of Google Blogger.There will be less emphasis on comparing the data from one quarter and one year to the present quarter.Instead more emphasis will be put on the change in direction from the past quarter and past year. As well as the direction predicted in past Workathon blogs.                               The two blogs that I will rely on for these predictions are- February25,2020 and October4,2020 on my Blogdaleupsome website.And the direction predicted ,in general, was that the growth in revenues must get back to the levels seen in 2017,2018 and 2019.In addition, they must keep up their work on controlling the delinquency rate on loans.Lastly they should increase their stake in the small online payments company called Paybright.

       Predictions

   So the first blog was done on February25,2020 and it stressed the importance of increasing it's non-prime lending and leasing  to include loans for customers to pay off bills and debts.This has been done and loan originations have risen in response.The February blog also recommended tightening up it's loan process so as to reduce it's delinquency rate and this has been a big success in GSY increasing it's margin.And it has now had continuing record high adjusted EBITDA.This blog also recommended buying a small furniture company like GBT in Quebec in an attempt to increase revenues on it's consumer goods side.This did not happen yet.

    The second blog was posted on October4,2020.First it predicted that the annual earnings for 2020 would be between $6.50-$7.00 per share.These figures underestimated Go Easy as GSY reported annual earnings of $7.57.Once again showing an increase in the margin while revenues were close to the estimate.Secondly this blog approved the minority interest taken in a small online payment company called PayBright.In fact,this blog recommended increasing their stake here.As it would further modernize Go Easy and could increase their P/E  multiple.However instead GSY sold it's stake in Pay Bright to a company called Affirm.Although it made a handsome profit this could restrict future growth in the growing online area.                                           

 

      Future Predictions

  Now Go Easy has a market capitalization of about $2 billion.If it is going to get to $4 billion then some of the changes already made must continue and some new ones implemented.The improvements on the delinquency rate should continue.But the growth in revenue is waining.Go Easy must make a few acquisitions on the consumer goods side such as a small furniture maker or  a small appliance maker to bolster consumer goods sales.But the biggest change recommended is to continue it's relationship with PayBright and to find another online payment company to include under the Go Easy umbrella.In order to increase it's growth in revenue GSY must have a greater online presence and the profits made from PayBright  should make it easy to do.As said in the earlier blogs this will increase it's P/E ratio and send the price towards $135 per share.     

     https://www.woodbridgegroup.com/