How to spot next CARVANA?

J

john7722

What is your strategy to scan for shitty overhyped stocks?
I remember watching TV and carvana commercials came on in every single segment on every single TV station. I was thinking to myself how the hell can they afford it ? They are just a reseler, they keep losing money , they have an average customer satisfaction rating and it is relatively easy to compete with them . When I look back it looks like a nobrainer to short it but I didn't .

Same with other shitty companies like SPOT . When they started to sign people like Joe Rogan for $150M, and other podcasters for milions , I was thinking that it seems rather expensive considering that Joe can just say something controversial and they might just have to fire him . They have good revenues but they make no money .

Is it as simple as to search for companies that are in a crazy uptrend , they have no cash , crazy debt and they keep loosing money every year ? Probably not, I am sure some of those shit companies can by in an uptrend for 10 years
 
Carvana chart -
what a tall beautiful mountain.

Climbers (and traders) started climbing from 25 in Mar 2020.
They reached their peak of 375 on Aug 2021.
Then the climbers (and traders) descended in Aug 2021 and reached the base camp at 4.

It is unlikely the climbers (and traders) will have any more climbing opportunities.
 
john7722 said:
Is it as simple as to search for companies that are in a crazy uptrend , they have no cash , crazy debt and they keep loosing money every year ? Probably not, I am sure some of those shit companies can by in an uptrend for 10 years
More...

There was a stock market bubble in the US in 2020 and 2021. That is what carried all these shitty companies to such heights. These kinds of silly valuations don't happen in isolation unless say there is some short squeeze going on in a particular stock.
 
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Makes me think of (HLF) Herbalife that Ackman shorted the shit out of. Icahn then burned/short squeezed him.

Turned out Ackman was right, just too soon. Stock at one time was $61, now is $15

As with anything trading/investing related "Timing is everything".

You have to find them before everyone else, then hope they then find them.
 
john7722 said:
Probably not, I am sure some of those shit companies can by in an uptrend for 10 years
More...

Old Wall Street Saying
"The price of a stock can stay irrational a lot longer then you can stay solvent."
 
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What do you think caused such a rapid crash in all of those over hyped companies like zoom,coin,roku, snow,pton etc?

Were they all artificiality pumped with intention to crash them eventually ?
 
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