We are hosting a Black Book on Wednesday February 14th at 12:30pm on Best Idea Short Carvana (CVNA). It is one of the most debated and most volatile stocks in all of retail. We first added CVNA to our short list at ~50 back in September and the stock rapidly fell nearly 50%. Shortly after, we detailed a portion of the thesis in our November Auto Retail Deep Dive (HERE) Now the stock has rallied back to 50. That is happening while we think the risk to the forward business performance is building and drastically mismatching the equity valuation, particularly with such a levered balance sheet. Used prices are falling, and some dealers and online players have closed down given the inability to drive any profits. We’ll walk through what we see and hear as the bull case and the bear case, and where investor sentiment rests. We’ll take a look at the industry forces at play and where we are in the cycle of used auto retail. Ultimately we’ll walk through why we are bearish and think that this stock has 50% or more downside risk over the next 18 months as the thesis plays out.
Call Details:
Wednesday February 14th at 12:30PM ET
Live Video Link CLICK HERE
Add To Calendar CLICK HERE
