Full Disclosure. I am a 14 year car business insider. A 15 year options trader. I am not an investment advisor. I am not a financial professional. I am a retail trader with Current open short option positions against Carvana.
From Nasdaq.com:
CVNA Insider Activity
Insider Trade 12 Months
Number of Shares Bought: 3,408,304
Number of Shares Sold: 9,004,135
End Quote
In the last 12 months Carvana CVNA has issued it’s directors and Officers 3.4 million shares (primarily through Options Exercise substantially below current market value)
Over the same 12 month period CVNA officers have sold roughly 9 Million shares at prices between $200-$400 for approx 2-3 Billion USD.
The company only estimates Annual Net Profit of around $629 Million.
The problem is NOBODY in the car business operates at anywhere near the margins CVNA claims to be operating. Autonation, CARMAX, Lithia- The largest and most efficient operators in the car business are not even close to the level of profitability CVNA claims.
There is a small chance Carvana insiders ARE NOT using their outsized stock sale gains to fluff the financial reports.
But the more I review the financials the less likely that seems
CVNA Insider Fraudsters Inflating Financial Results
byu/BFLO-Retail instocks
Posted by BFLO-Retail
5 Comments
When you say “using their outsized stock sale gains to fluff the financial reports”, what exactly do you mean?
How would they be using their sale of stock to puff up the reports?
The short report already exposed how they operate. The dad sells over priced stocks to pay for the loan failures his private company buys from cvna. Or some shit
Everyone knows theyre fraudsters, but no one seems to care enough to actually do anything about it as long as they can keep making money off them. Welcome to the golden age of fraud.
Mind your own business. The party can keep going longer than you can remain solvent shorting the stock
Same boat – and been saying this for months, I just shake my head when I see the stock price currently.
Sooner or later