How This Niche Finance Company Tripled Investor Wealth in 3 Years

Hand arranging wood block stacking as step stair with arrow up.

If you’ve never heard of Mississauga-based goeasy (TSX:GSY), you’re not alone. I wouldn’t be surprised if this $865 million company fell under the radar of most investors. However, goeasy has been quietly expanding its business and delivering phenomenal results for investors over the past three decades. 

When it was featured on the recently published TSX 30 list, it caught my attention. Early investors in the company have tripled their money since 2016 and more than quintupled their capital since 2009. 

By all accounts, this is one of the fastest-growing companies on the Canadian stock exchange. So, here’s a closer look:

Subprime lender

There’s no polite way to say this, but goeasy is the corporate version of a legitimate loan shark. The company offers cash to borrowers with bad or non-existent credit, and charges them an exorbitant interest rate to cover the risk. 

The annual interest rate on the company’s typical loans could be as high as 46%, which is well within the legal limit of 60%, but unbelievably high for the average consumer. goeasy has positioned itself as a lender of last resort for borrowers shunned by the mainstream banks and financial institutions. 

Payday lenders and subprime mortgage brokers are common across the world, but goeasy seems to be one of the largest and most successful operations.  

Wealth compounding machine

Since 2001, the company has expanded sales at an annual rate of 12.7%. Net income, meanwhile, has been growing at an annually compounded rate of 29% over the same period. In its most recent annual report, the company claimed a return on equity of over 21.8%. 

That’s the reason why its stock has delivered such exceptional returns over the years. Despite its stellar performance, the stock trades at a relatively modest valuation. The price-to-equity ratio is a mere 13, while the stock trades at just over two times annual sales per share. 

However, I wouldn’t call the company undervalued. There are some legitimate reasons why the firm deserves a lower valuation than mainstream lenders and major banks. 

Buyer beware

goeasy’s business model has two inherent flaws. Firstly, this industry’s reputation makes it an easy target for politicians and the general public. Recent regulations have already clamped down on payday lenders, and several provinces have placed lower caps on the interest rate lenders can legally charge. 

If the business gets too large or gains mainstream attention, more regulations and restrictions could follow. 

However, a bad reputation isn’t the biggest risk for goeasy. Instead, the next recession poses a much larger threat. Canadian households already have record-high debt levels. During an economic downturn, borrowers with the lowest incomes and worst credit ratings are usually the first ones to default on their loans. 

The company has already experienced such a scenario. It lost nearly half of its net income between 2007 and 2009 as the global financial crisis raged on. Another recession could have a similar impact on goeasy’s bottom line. 

Bottom line

Subprime lending may be controversial, but it’s also unbelievably lucrative. goeasy’s track record speaks for itself, but investors may want to consider its reputation and recession-related risks before diving in. 

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Canopy Growth (TSX:WEED) vs. Canopy Rivers (TSXV:RIV): Which Is the Better Buy?

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It is widely known that Canopy Growth (TSX:WEED)(NYSE:CGC) is the industry leader when it comes to cannabis. Now though, as the industry is evolving and edibles and extracts are about to be legalized, could its venture capital company Canopy Rivers (TSXV:RIV) be the better investment?

Canopy Rivers was originally started to focus on the smaller opportunities in the cannabis space that Canopy Growth couldn’t take seriously.

As Canopy Growth started to acquire companies, and as investments in the sector became more abundant, Canopy Growth’s valuation exploded. With its focus becoming the market and world leader at the time, it couldn’t focus on the smaller opportunities, yet didn’t want to turn them away.

Consequently, Canopy Rivers was born, and to date it has evaluated more than 1,500 opportunities. So, what is the difference, and which is the better investment?

Canopy Growth

An investment in Canopy Growth is an investment in the industry leader for licensed producers. Canopy has been at the forefront of the cannabis industry long before recreational cannabis was even legal.

In addition to its cannabis cultivation, CGC is also growing its research considerably to be the first to market in whatever new product or service that is being innovated.

Its research and developments continues to be one of the industry leaders, as the company now has more than 90 patents and more than 240 patent applications filed to date.

It has helped to find products for a number of problems such as sleep aids, animal health products, anxiety relief, health and wellness products, as well as much more.

So far, the company has operations in 12 countries on five continents and continues to push for more international expansion.

Excluding Ontario, the largest province by population, Canopy has signed 10 supply agreements to provide roughly 70,000 kg per year of recreational cannabis.

In the third quarter of 2019, it did roughly $85 million in sales on just over 10,000 kg or kg equivalents of cannabis product sold and shipped. Of these shipments, roughly 80% was recreational cannabis.

These numbers don’t seem all that impressive, but the recreational industry is less than a year old in Canada, and the international markets continue to open up new opportunities everyday, so Canopy Growth should still be one of the top choices for cannabis investors.

Canopy Rivers

Canopy Rivers is the way to go if you want more exposure to all the other businesses and sub-sectors in the cannabis industry. After having evaluated more than 1,500 opportunities, to date the company has made 18 investments in the companies it thinks have the most potential.

From its 18 investments, it has exposure to more than 10 different sub-sectors in the industry — anything from vaping, hardware, cosmetics, natural health products to media and technology or even equipment and supplies.

Another advantage it holds is having a massive network of companies to work back and forth with. Since it has its ties to Canopy Growth as well as all these small companies, it can broker deals and help to scale the expertise it has in its many investments.

With the exposure to all of these sub-sectors and the competitive advantage it has with its strategic partnerships, Canopy Rivers is poised to be rewarded as the industry continues to mature.

Bottom line

Neither stock is necessarily better than the other; each offers investors exposure to a different segment of the market. You need to decide whether you believe the producers are a better investment or if all the other smaller companies are better. Of course, you could always diversify your investments and buy both.

The main thing is not waiting too long to get in, especially since extracts and edibles are being legalized in October.

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Fool contributor Daniel Da Costa has no position in any of the stocks mentioned.

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Discover Bank Promotions for September 27, 2019: $150/$200 Savings Bonus & $360 Cashback Debit

Discover Savings BonusFind the latest Discover Bank promotions, offers, and bonuses for September 27, 2019 here.

Discover Bank has a range of accounts including Online Savings, Checking, Money Market, CD, and IRA accounts.

Their typical amount for their Online Savings are $150 or $200 bonus. Debit Cashback account gets you $360 cash back.

About Discover Bank Promotions

Headquartered in Greenwood, Delaware, Discover Bank is an online-only bank with no retail branches. They can offer better rates by operating their banking services online due to little overhead. Their line of deposit accounts include Savings, Checking, Money Market, CD, and IRA CD accounts.

Discover even has IRAs and CDs with terms of up to to 10 years, as well as Money Market account all with competitive APY rates. Be sure to search of the best bank promotions from the internet’s most updated list, then compare rates with all the best listed on our Savings Rates Page and CD Rates Page.

I’ll review current Discover Bank offers below.

*Find all Discover Bank Promotions here*
Discover Bank Online Savings $200 Cash Review
Discover Bank Online Savings $150 Cash Review
Discover Cashback Debit $360 Cash Review
Discover Bank CD Up to 2.50% APY Review
Discover Bank Money Market Up to 1.80% APY Review
Discover Bank IRA CD Up to 2.50% APY Review

Discover Online Savings $200/$150 Bonus 

Discover Bank Bonuses

Earn $150 or $200 bonus from Discover

Earn $200 Bonus with $25,000 minimum deposit from Discover Bank. Make sure to utilize the promo code HMB919 when you open an account to see the $200 promotion terms. Your savings account has no monthly minimum balance requirement!

  • Account Type: Discover Online Savings
  • Availability: Online, Nationwide
  • Expiration: 10/7/2019
  • Credit Inquiry: Soft Pull via ChexSystems
  • Opening Deposit: $0
  • Credit Card Funding: None
  • Direct Deposit Requirement: None
  • Monthly Service Fee: None
  • Closing Account Fee: None

One of my first bank bonuses, Discover Online Savings is known for its online convenience and high interest yields. They provide a safe and secure way to save money each month.

As with any online bank, Discover is able to avoid overhead costs of a physical branch, thus saving money and offering you a higher savings rate. This is simply one of the best Discover Bank promotions!

(See Advertiser for full details)

How To Earn The $200/$150 Bonus

  • Apply for your first Discover Online Savings Account.
  • Enter Offer Code HMB919 when applying.
    • Fund your first savings account with a minimum of $25K by 10/21/2019 to earn the $200 bonus
    • Fund your first savings account with a minimum of $15K by 10/21/2019 to earn the $150 bonus
  • Maximum bonus eligibility is $200. See advertiser website for full details
  • Earn high interest rate of 1.90% APY
  • No minimum opening deposit, no minimum balance requirement, and no monthly fees
  • Interest on Discover Online Savings Accounts is compounded daily and credited monthly
  • Manage your account online or with the Discover mobile app
  • FDIC insurance up to $250,000
  • There are no monthly service fee for this account.
  • Offer not valid for existing or prior Discover savings customers.
  • Account must be open when bonus is credited.
  • Bonus is considered interest and will be reported on IRS Form 1099-INT.
  • Offer may be modified/withdrawn without notice.

Discover Cashback Debit $360 Yearly

Earn 1% cash back for up to $3,000 each month on debit card purchases with a Discover Cashback Debit account. That’s up to $360 Debit Card Cashback per year. Enjoy many perks such as no monthly fees or balance requirements and access to +60,000 free ATMs.

  • Account Type: Discover Cashback Debit
  • Availability: Online, Nationwide
  • Credit Inquiry: Soft pull, which does not affect your credit
  • Monthly Fees: None

(No Expiration Date Listed)

Another great Discover Bank promotion is the Discover Cashback Checking account. I use the free checking account myself which allows me to earn up to $360 a year in cash back bonuses.

How To Earn $360 Yearly Cash Back

  • Access to over 60,000 free ATMs in the U.S. (uses the Allpoint network; the largest ATM network big online banks use)
  • Earn 1% cash back on up to $3,000 in debit card purchases each month
  • Free Online Bill Pay (standard with most banks)
  • Free Check Reorder (good perk; most banks charge for re-orders)
  • No Cost for Replacement Debit Card (standard with most banks)
  • Free Official Bank Check (standard with most banks)
  • No Cost for Expedited Delivery for your Replacement Debit Card (good perk; some banks charge for this)
  • Free Outbound ACH Transfers (standard with most banks)
  • Free Incoming Wire (good perk; most traditional banks charge for this)
  • No monthly fees or monthly balance requirements (standard with online banks; traditional banks usually have monthly maintenance fees)
  • ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards.
  • Purchases made using third-party payment accounts (services such as Venmo® and PayPal™, who also provide P2P payments) may not be eligible for cash back rewards.
  • Account must be open at the time the rewards are applied. Offer may be modified or withdrawn without notice.

Discover Certificate of Deposit 2.50% APY Rate

Discover Bank CD

Earn up to 2.50% APY for CD

Discover Bank offers Certificates of Deposit (CD) accounts with some of the highest rates. Depends on the length of the term, you can earn up to 10 years with 2.50% APY.

In order to open a CD, you need a minimum deposit is $2,500 and the interest rates have been consistently competitive with terms as short as 3 months to 120 months long.

CD Term APY Rate
3-Month Term 0.35% APY
6-Month Term 0.65% APY
9-Month Term 0.70% APY
12-Month Term 2.30% APY
18-Month Term 2.30% APY
24-Month Term 2.35% APY
30-Month Term 2.35% APY
3-Year Term 2.35% APY
4-Year Term 2.35% APY
5-Year Term 2.40% APY
7-Year Term 2.45% APY
10-Year Term 2.50% APY

(FDIC Insured)

Interest rate from traditional Savings account can change the next day, however CDs rate can be guaranteed for the length of the term for risk-free income.

CDs features include high interest rates, 24/7 Live Customer Service, Online Account Management, and FDIC Deposit Insurance up to $250,000 per individual account holder (FDIC certificate 5649). Learn more from our in-depth review here.

Discover IRA CD 2.50% APY Rate

If you are thinking about retirement, consider getting a Discover Bank IRA CD account to earn a guaranteed rate to offset your risk for the future. Discover’s 10-year IRA CD is currently earning an incredible rate of 2.50% APY. This is much higher than any savings account I have seen and could be quite a good investment in the long run.

With Discover Bank, you can choose an IRA term as low as 3 months or as long as 10 years. They also provide 24/7 phone service so you can always call them if you have any further questions! Discover IRA CD Review

(FDIC Insured)

Discover Money Market 1.80% APY Rate

Discover Money Market

Discover Bank’s Money Market account offers 1.75% APY rate on balances up to $99,999. Those with a balance $100K and higher, you’ll earn 1.80% APY with easy cash access via ATM, debit, or check. There is no hidden fees and get access to over 60,000 free ATMs.

Discover Bank provides great APY rates so you can earn more money with many free features transfer money, withdraw money, deposit money, view your daily activity, or pay bills in just a few steps online or on your mobile phone. Money Market Account Review

(FDIC Insured)

Should You Open a Discover Bank Account?

We consider Discover Bank to be the top online bank in the country. These Discover bank promotions have a nice deposit bonus along with some of the highest interest rates on savings products.

Discover Monthly Fees

Discover recently eliminated many of their fees– pretty much no fees at all.

Cashback Checking:

  • No monthly service fee
  • No ATM fee at over 60,000 ATMs in the US
  • Zero fee for online bill pay
  • No fee for check order
  • No fee for replacement debit card
  • Zero fee for official bank check
  • No fee for outbound ACH transfers
  • No fee for deposited item returned
  • Zero fee for incoming wire
  • No fee for stop payment
  • No insufficient funds fee

Online Savings:

  • No fee monthly service fee
  • No fee for official bank check & expedited delivery
  • Zero fee for deposited item returned
  • No fee for incoming wire
  • No fee for each excessive withdrawal
  • Zero fee for stop payment order
  • No fee insufficient funds fee

Money Market:

  • No fee for minimum balance fee
  • No fee for ATM fee at over 60,000 ATMs in the US
  • Zero fee for check order
  • No fee for replacement debit card
  • No fee for deposited item returned
  • Zero fee for incoming wire
  • No fee for each excessive withdrawal
  • No fee for stop payment
  • Zero fee for insufficient funds fee

Certificate of Deposits:

  • Zero monthly service fee
  • No fee for official bank check
  • No fee for incoming wire

Bottom Line

Definitely sign up for an online checking or savings account with no monthly fees or minimum balance requirements. Discover also has great CD accounts with outstanding % APY rates.

The Discover Online Savings and Debit Cashback checking are both recommended. A great way to earn some extra money on your cash balances for opening your first online savings account!

*Stay up to date by bookmarking this page for Discover bank promotions, bonuses, and offers!

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The post Discover Bank Promotions for September 27, 2019: $150/$200 Savings Bonus & $360 Cashback Debit appeared first on Hustler Money Blog.

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Starting from Zero Review

Are you trying to find other ways to earn aside from your 9 to 5 job? The internet offers a lot of earning potential. With the internet age, you can do almost anything. Did you just start exploring online for money making opportunities? Because there are hundreds of ways to earn online and some only…

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Asian NGOs call for Indonesian government to stop the abuse of power by Indonesian police

(Bangkok, 27 September 2019) – The Asian Forum for Human Rights and Development (FORUM‐ASIA), together with its members in Indonesia, the Alliance of Independent Journalists (AJI), the Commission for the Disappeared and Victims of Violence (KontraS), the Human Rights Working Group (HRWG), the Indonesian Human Rights Monitor (Imparsial), the Indonesian Legal Aid and Human Rights Association (PBHI), and the Indonesian Legal Aid Foundation (YLBHI), express grave concern over the escalating violence and  disproportionate use of force by the Indonesian police against peaceful protests across the country.

“The police must stop the violent and repressive response to protests, and respect freedom of expression, including freedom of the press”, said the group.

It further states, “We stand in solidarity with the students, civil society organisations, journalists, and broader public of Indonesia, who are criticising: the recent passing of the amendment to the law governing the Corruption Eradication Commission; the proposed revisions to the Criminal Code; and other problematic laws.”

Protests in Indonesia started after Parliament passed an amendment to the law governing the Corruption Eradication Commission, even though it had been strongly criticised for weakening anti‐corruption efforts in the country, among others by eroding its independence.

Additionally, the Commission will only be allowed to hire investigators, who are already public servants. Activists are concerned that, particularly within the current political climate, these changes will undermine the investigative powers of the anti‐corruption commission and subsequently weaken the institution.

Protesters are also infuriated by the intention of the House of Representatives to legalise a new Criminal Code, which contains provisions that will further marginalise already vulnerable groups, including women and LGBTIQ people, and will curb fundamental freedoms in the country.

The draft law brings back draconian provisions, which have been gradually abolished or deemed unconstitutional by the Constitutional Court due to effort of civil society organisations since the fall of the New Order in 1998, including the criminalisation of expressing dissenting opinions against Presidents and other state authorities.

There are also other contentious laws currently being discussed, including the proposed Land Law and the Law on Labour Relations, which seem to prioritise political interests of certain groups over the people of Indonesia at large.

Disappointment with the House of Representative triggered massive public protest on Monday, 23 September 2019, in Jakarta and other cities in Indonesia, which have been ongoing since. On 24 September 2019, protesters, mostly students from various universities in Indonesia, came to the House of Representatives demanding: the postponement of those bills; the amendment of the Law on Corruption Eradication Commission to be revoked; and a dialogue with the members of House of Representatives.

Instead of being welcomed by the legislators, the protesters were confronted by excessive abuse of power by the police. Police blatantly beat protesters, sprayed tear gas, hindered provision of medical supplies, and arrested and harassed medical personnel, activists, students, and journalists. As of now, 50 university students have been brutally and arbitrary arrested without proper identification or clarification on who was being arrested, and why. Their whereabouts are unknown. They were not granted access to a lawyer, nor offered legal assistance. Since the start of the protests, two students have died.

Among those who are were arrested are: Dandhy Dwi Laksono, who has openly criticised the Government on ongoing human rights violations in West Papua; and Ananda Badudu, who was fundraising to support the students demonstrations. Both have been detained since 26 September 2019.

It is evident that both the House of Representative and the police have little interest in protecting the rights of the people. Despite criticisms and demands for consultations on the proposed bills, the House of Representatives has maintained its exclusive and elitist decision‐making process that does not prioritise the needs of the people.

On the contrary, the police, instead of protecting people, has treated protesters in an inhumane and degrading manner, and has excessively used tear gas and other forms of violence against protesters.

Although President Joko Widodo has recommended the passing of the new Criminal Code be postponed, there is no indication the process will be stopped.

The NGOs in their statement call upon the President of Indonesia to de‐escalate this situation by ordering to put a stop on all use of violence by law enforcement agents; investigating the abuse of power, bringing the perpetrators to justice; and freeing and offering legal assistance those who were arbitrarily arrested during the protests.

They also call on the House of Representatives to put halt on all discussion related to the above mentioned discriminatory bills and conduct consultations with all stakeholders, including civil society organisations and students, in an effort to further review the proposed laws.

“We remind the Government of Indonesia of its commitments as a future member of the UN Human Rights Council from 2020 – 2022. Indonesia must ensure that the constitutional rights of its people are respected and protected and international human rights principles and standards, including the International Covenant on Civil and Political Rights (ICCPR), are upheld.”

The post Asian NGOs call for Indonesian government to stop the abuse of power by Indonesian police appeared first on The Online Citizen.

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