Short Seller Who Called Goeasy Crash Praises ‘Come Clean’ Moment

Goeasy disclosed 'hundreds of millions' of dollars in loan losses last week, triggering a sharp plunge in its share price. The losses highlight material credit deterioration in its subprime financing business and increase downside risk to the company’s balance sheet and earnings. Investor attention has been heightened because Victor Bonilla publicly warned about these financing risks in September, supporting the negative market reaction.

Analysis

Goeasy disclosed 'hundreds of millions' of dollars in loan losses last week, triggering a sharp plunge in its share price. The losses highlight material credit deterioration in its subprime financing business and increase downside risk to the company’s balance sheet and earnings. Investor attention has been heightened because Victor Bonilla publicly warned about these financing risks in September, supporting the negative market reaction.