https://www.bloomberg.com/news/arti...-from-father-son-duo-s-wealth?srnd=markets-vp Ouch. Reminds me of the distinction about where money flows. Sometimes it sloshes around and there is opportunity short-med term. Sometimes it migrates and there is long term opportunity. For those who can't access: They are a used car company. "The company’s stock, which once traded as high as $376.83 intraday, fell as much as 42% to $8.37 in New York trading after poor quarterly results led Morgan Stanley analyst Adam Jonas to float the idea that it could sink to as low as $1. Shares are now down 96% in 2022. " "The deteriorating second-hand car market and volatile interest-rate environment “add material risk” to the company's outlook, Morgan Stanley’s Jonas said in a note. Carvana’s bonds also slumped to a record low, with some securities maturing in 2028 falling below 40 cents on the dollar."
I haven't looked at their financials and am not familiar with their management or operational structure but I do know that they are a high gross retailer. I am not sure consumers are willing to trade the convenience of non-negotiable delivery for high price.
I read an article about them a month ago, it is basically a fraud. I forgot the details though. maybe this: Delivering undrivable cars: https://www.barrons.com/articles/carvana-used-cars-registration-problems-51656111441 What is the controversy with Carvana? No states are known to have sanctioned Carvana over the practice of selling vehicles without holding title, but in multiple states where Carvana does business—including Texas, Pennsylvania, Michigan, and Illinois—regulators say it's illegal in most cases to do so. Jun 24, 2022 Furthermore:
As usual, I was early.... but proven right in the long run. It was $58 at the time... ran to $370 lol....
Those who shorted it a few months ago should be laughing all the way to the bank. Will it go below $1 ?! Carvana is the investors' nightmare. Carvana is the traders' dream.
%% %% Actually it did find a monthly bottom@ $55-58. But that was back in bull market. Looks Like Wall Street is pricing it now for the scrap dealers CPRT which scraps car parts is not doing very much better. Good sell volume on CVNA
Copart is kicking ass. It had a 2:1 split. It would be $114 One of the best stocks out there right now. It has held up incredibly well over the last 6 months. They print money. And they own tons of land. CPRT---> $56.89
CVNA went from $360 to under $4 in 16 months, and used car prices are still too high (+38% since Dec'19. You know they don't have a viable business model when they burned cash in a used car bubble. https://www.cargurus.com/Cars/price-trends/