One Canadian company’s share price has dropped about 50% from previous highs, and while that kind of drawdown can be alarming, it can also present a buy-and-hold opportunity if the underlying business remains solid and future cash flows are intact. The stock in question is GoEasy Ltd. (TSX: GSY) — a specialty finance company that operates niche lending platforms in Canada.

GoEasy’s core operations are centered around two segments: easyfinancial, which provides personal loans to consumers who may have limited access to traditional credit, and LendCare, which offers point-of-sale financing for home improvements and healthcare equipment. This business model is different from conventional banks because it focuses on under-served borrowers and point-of-sale markets where demand for flexible financing tends to remain strong, even in less favorable economic environments.

The recent drop in GoEasy’s stock hasn’t been driven by a collapse in fundamentals — earnings and loan book growth remain intact — but rather by market sentiment and the higher risk premium investors assign to non-prime lenders. When broader markets rotate away from riskier assets or there’s fear around consumer credit quality, companies like GoEasy can get swept up in indiscriminate selling.

That drawdown, however, has pulled GoEasy’s valuation back to levels that may offer an attractive entry point for long-term investors. A discounted price can improve the expected return if the company continues to generate stable cash flow and maintains prudent risk management practices. Moreover, GoEasy pays a dividend, adding passive income to total return potential — a bonus for buy-and-hold investors looking for both income and capital appreciation.

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Of course, risk remains. Specialty finance businesses are sensitive to credit cycle dynamics, interest-rate shifts, and macroeconomic conditions that could impact loan performance. GoEasy’s focus on higher-risk borrowers means defaults and delinquencies are a variable investors must monitor periodically. But if you believe in the long-term viability of its lending niche and its ability to manage credit risk proactively, the current discount could be worth taking advantage of.

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For patient investors with a multi-year time horizon and a tolerance for volatility, GoEasy’s 50% pullback may represent a compelling chance to buy and hold a fundamentally sound business at a lower price than what it once commanded — especially inside tax-advantaged accounts like a TFSA or RRSP.