External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Equity Bottom-Up

<ul><li>Carvana has seen a big increase in its stock price despite concerns over bankruptcy that did not come to fruition</li><li>The company has advantages in unit economics and is well-positioned to gain market share in the auto retail industry</li><li>Carvana offers competitive pricing, quality, convenience, and selection, making it an attractive option for customers and investors alike</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

Carvana has seen a big increase in its stock price despite concerns over bankruptcy that did not come to fruitionThe company has advantages in unit economics and is well-positioned to gain market share in the auto retail industryCarvana offers competitive pricing, quality, convenience, and selection, making it an attractive option for customers and investors alikeThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>This is our first report on e-commerce player, Carvana.</li><li>The company's Fourth Quarter 2023 Earnings included an optimistic forecast regarding the company's economic performance.</li><li>The company's fiscal year GPU (Gross Profit per Unit) augmented by nearly $1,000, setting a fresh record and exceeding their previous best in 2021.</li></ul>

This is our first report on e-commerce player, Carvana.The company's Fourth Quarter 2023 Earnings included an optimistic forecast regarding the company's economic performance.The company's fiscal year GPU (Gross Profit per Unit) augmented by nearly $1,000, setting a fresh record and exceeding their previous best in 2021.

Carvana Co: Initiation Of Coverage - AI & 5 Major Growth Drivers! - Financial Forecasts

Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

<ul>
<li>Liquidity shorts can be great short candidates.  The key characteristic is that the company may not be viable, economically, given their cash flows and cash requirements. </li>
<li>Liquidity shorts have built-in catalysts, have moderate to higher betas,  and can have strong down moves if a crisis develops.  They can go bankrupt, pushing the stock price near zero.</li>
<li>Today we are flagging Carvana, Exact Sciences, Inspire Med, Freshpet, Enviva .</li>
</ul>


Liquidity shorts can be great short candidates.  The key characteristic is that the company may not be viable, economically, given their cash flows and cash requirements. 
Liquidity shorts have built-in catalysts, have moderate to higher betas,  and can have strong down moves if a crisis develops.  They can go bankrupt, pushing the stock price near zero.
Today we are flagging Carvana, Exact Sciences, Inspire Med, Freshpet, Enviva .


Liquidity Risk Short Candidates: Carvana, Exact Sciences, Inspire Med, Freshpet, Enviva

Event-Driven

<ul>
<li>This model seeks companies facing dangerously high leverage coupled with negative or declining cash flows.  It considers interest expense, capex and short term maturities for additional input. </li>
<li>The companies may not be viable given cash flows and capital structures.  These shorts tend to have  higher betas  and can have strong down moves as the crisis is recognized. </li>
<li>This week we flag: Carvana, Life Time Group, Bed Bath &amp; Beyond, Surgery Partners</li>
</ul>


This model seeks companies facing dangerously high leverage coupled with negative or declining cash flows.  It considers interest expense, capex and short term maturities for additional input. 
The companies may not be viable given cash flows and capital structures.  These shorts tend to have  higher betas  and can have strong down moves as the crisis is recognized. 
This week we flag: Carvana, Life Time Group, Bed Bath &amp; Beyond, Surgery Partners


Solvency Risk Short Candidates: Carvana, Life Time Group, Bed Bath & Beyond, Surgery Partners

Global Automotive Stocks/EV Focus/Event Driven, SC Capital

SC Capital

Global Automotive Stocks/EV Focus/Event Driven

Over 22 years covering Japanese equities on both the sell side and the buy side. 

Bottom-up Japan Equities Research

Faraday Future Intelligent Ele / Equity Bottom-Up

<ul>
<li>Fardaday Future (FF) announced it lined up at least $100m in funding from two investors but gave little detail. Deal is set to close on or before August 8th. </li>
<li>Given that it's a senior secured convert deal, we doubt more than $100m-$200m can be raised, despite FF's release saying the deal has capacity for $600m.</li>
<li>FF only had $222m in cash in April after -$173m in FCF in Q1. They need $1bn to last through 2023. Anything less than $600m in funding would be negative.</li>
</ul>


Fardaday Future (FF) announced it lined up at least $100m in funding from two investors but gave little detail. Deal is set to close on or before August 8th. 
Given that it's a senior secured convert deal, we doubt more than $100m-$200m can be raised, despite FF's release saying the deal has capacity for $600m.
FF only had $222m in cash in April after -$173m in FCF in Q1. They need $1bn to last through 2023. Anything less than $600m in funding would be negative.


Faraday Future (FFIE) Claims It Lined Up Funding but Details Are Vague

United States

Carvana Co. operates an online platform for buying used cars. The Company offers test drives, vehicle financing, and car reviews. Carvana serves customers in the United States.

Carvana (CVNA US)

Carvana Co (CVNA) - Friday, Dec 15, 2023

Carvana's innovative approach to the used car industry, strong unit economics, and customer-centric model make it a compelling long-term investment...

Value Investors Club

Carvana Co: Initiation Of Coverage - AI & 5 Major Growth Drivers! - Financial Forecasts

This is our first report on e-commerce player, Carvana. The company's Fourth Quarter 2023 Earnings included an optimistic forecast regarding the...

Baptista Research

Liquidity Risk Short Candidates: Carvana, Exact Sciences, Inspire Med, Freshpet, Enviva

Liquidity risk short candidates may not be economically viable given cash flows and capital requirements. This week we flag Carvana, Exact...

Eric Fernandez, CFA

Solvency Risk Short Candidates: Carvana, Life Time Group, Bed Bath & Beyond, Surgery Partners

This model seeks companies facing dangerously high leverage coupled with negative or declining cash flows. This week we flag: Carvana, Life Time...

Eric Fernandez, CFA

Faraday Future (FFIE) Claims It Lined Up Funding but Details Are Vague

Faraday Future (FFIE) spiked by 21% yesterday on news that it's found investors with at least $100m in funding. They need $1.5bn. Their vague...

SC Capital