Carvana (CVNA)

Well they missed top and bottom... AND... they guided FY19 revenues down.
Any other stock would have plummeted.
This one climbed and went north of $47 before it closed at $46.
As planned.
Its up over 50% in the last 11 trading days. :D
It'll gap up tomorrow.
Shorts are gonna get slaughtered.
 
vanzandt said:
Well they missed top and bottom... AND... they guided FY19 revenues down.
Any other stock would have plummeted.
This one climbed and went north of $47 before it closed at $46.
As planned.
Its up over 50% in the last 11 trading days. :D
It'll gap up tomorrow.
Shorts are gonna get slaughtered.
More...

You thinking short it near tomorrow’s close or trying a few stabs if CVNA starting trading below its open tomorrow?
 
vanzandt said:
Gotta love a stock (with a $6B market-cap) that goes up 70% in 16 trading days. :D
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vanzandt said:
It may drop, but its too risky to short at the present.
Right now its a game for the big players. One could easily get trapped.
Better to wait until the dust settles a bit.
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Good points. I think we have seen this play out over and over again with stocks of questionable valuations. The shorts pile on only to get shaken out by a vicious rally.

From a trading standpoint, high short interest seems to be a better predictor for a stock price than high relative valuations. Indeed, even high valuations and weakening fundimentals many times are trumpted by high short interest. The key may be to monitor short interest and wait for a huge short covering rally on extreme volume.
 
vanzandt said:
Founder is selling.

https://www.sec.gov/Archives/edgar/data/1017608/000120919119020509/xslF345X03/doc4.xml
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I guess doubling his own salary wasn't enough.

____________________________________________

Managing Editor, Phoenix Business Journal
Feb 27, 2019, 9:55pm MST

Carvana Co.'s three top executives will see hefty increases to their annual salaries, the result of the company's growth that has seen revenue boom, even amid large losses.

CEO Ernie Garcia, CFO Mark Jenkins and Chief Operating Officer Ben Huston all will have their pay increased, retroactive to January first, as part of the company's annual performance review, according to documents filed Wednesday with the U.S. Securities and Exchange Commission.


That will take Garcia's annual pay from $400,000 to $885,000 while Jenkins and Huston each will see their pay rise from $375,000 to $735,000.

The trio also were granted restricted stock awards, with Garcia receiving 13,586 units and Jenkins and Huston each getting 11,283 units. The shares will be 25 percent vested by 2020 and will continue to increase for the next three years. At current prices, the awards equate to between $471,000 and $568,000.

The salary increases come as the Tempe-based used vehicle sales company reported its fourth quarter and annual results that saw huge increases in revenue.

For the fourth quarter ended Dec. 31, 2018, the company reported a loss of $28.9 million, or 74 cents per share, on revenue of $526 million. That compares with a loss of $7.1 million, or 45 cents per share, on revenue of $246 million for the same quarter last year.

For the year, Carvana (Nasdaq: CVNA) reported a loss of $67.3 million, or $2.24 per share, on revenue of $1.79 billion. That compared with a loss of $64 million, or $1.31 per share, on revenue of $797 million.

The company's non-GAAP earnings, a loss of 55 cents per share, were worse than what Wall Street had anticipated, but investors seemed not to mind. Carvana shares closed up $3, or 7.2 percent, to end the session at $44.82 on Thursday, after soaring to nearly $46 earlier in the day. Click here to follow the stock.

The boost is welcome for the company's stock, which is trading about in the middle of its 52-week range and well off its 52-week high of $72.59 per share.
 
"as part of the company's annual performance review"

wtf!?! Must be a great place to work.

______________________________________

For the year, Carvana (Nasdaq: CVNA) reported a loss of $67.3 million, or $2.24 per share, on revenue of $1.79 billion. That compared with a loss of $64 million, or $1.31 per share, on revenue of $797 million.

The company's non-GAAP earnings, a loss of 55 cents per share, were worse than what Wall Street had anticipated
 
vanzandt said:
I guess doubling his own salary wasn't enough.

____________________________________________

Managing Editor, Phoenix Business Journal
Feb 27, 2019, 9:55pm MST

Carvana Co.'s three top executives will see hefty increases to their annual salaries, the result of the company's growth that has seen revenue boom, even amid large losses.

CEO Ernie Garcia, CFO Mark Jenkins and Chief Operating Officer Ben Huston all will have their pay increased, retroactive to January first, as part of the company's annual performance review, according to documents filed Wednesday with the U.S. Securities and Exchange Commission.


That will take Garcia's annual pay from $400,000 to $885,000 while Jenkins and Huston each will see their pay rise from $375,000 to $735,000.

The trio also were granted restricted stock awards, with Garcia receiving 13,586 units and Jenkins and Huston each getting 11,283 units. The shares will be 25 percent vested by 2020 and will continue to increase for the next three years. At current prices, the awards equate to between $471,000 and $568,000.

The salary increases come as the Tempe-based used vehicle sales company reported its fourth quarter and annual results that saw huge increases in revenue.

For the fourth quarter ended Dec. 31, 2018, the company reported a loss of $28.9 million, or 74 cents per share, on revenue of $526 million. That compares with a loss of $7.1 million, or 45 cents per share, on revenue of $246 million for the same quarter last year.

For the year, Carvana (Nasdaq: CVNA) reported a loss of $67.3 million, or $2.24 per share, on revenue of $1.79 billion. That compared with a loss of $64 million, or $1.31 per share, on revenue of $797 million.

The company's non-GAAP earnings, a loss of 55 cents per share, were worse than what Wall Street had anticipated, but investors seemed not to mind. Carvana shares closed up $3, or 7.2 percent, to end the session at $44.82 on Thursday, after soaring to nearly $46 earlier in the day. Click here to follow the stock.

The boost is welcome for the company's stock, which is trading about in the middle of its 52-week range and well off its 52-week high of $72.59 per share.
More...

CVNA’s dollar loss increased about four fold, while their loss per share increased less than 2 fold. This implies a public offering in between reporting periods, substantially increasing outstanding shares and “diluting” the reported per share loss.

Presumably CVNA’s board of directors includes a large investing institution or two and maybe someone connected with the investment bank from their IPO. The salary increases for CVNA’s executives likely did not happen in a vacuum. Further, the salaries for CVNA executives seemed “small”, making the latest increase looks like a “catching up”. The fact this salary increase coincided with a increased loss implies that revenue may the driving performance metric for CVNA’s board of directors rather than earnings. Perhaps this is because costs of a rapidly expanding retail business are not easily predicted or even of major concern to the board of directors or key institutional investors as long as the company’s finances are not being strained too much or future availability of capital is not a question. Another factor in approving the salary increase may be the board of directors sense CVNA’s business model is working and long term profitability is nearly assured while the company matures as it increases market penetration.
 
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