Really!

Fraud or Bad Debt by another name! One would expect a significant amount of bad debt in the GoGette book as it was grown at all cost. They hinted at it with the extra provisioning required for GG at the AGM. Admittedly with the $5m positive accounting adjustment in 1h and 3m in fraud now (possibly more) - taking those two into account CAGR would have been negative over the last 3 years.

GG is in direct competition with other lenders, its far different to the hospitality business, this write off will drive tighter credit approval and the longer term finance product is at a lower margin. Returns for GG will become no better than any other lender competing in that space - it makes far more sense to focus on hospitality.

Eitherway its all in the dividend - yield hard to find elsewhere - the share price has benefitted accordingly. Long term the investment in Canada and other countries will be what delivers the returns required to sustain the dividend.