Forbes: $CVNA Struggles During Market Crash

[Cat9MixCloud]

This is one of the steepest roller coaster rides in FOMOville from the past two years:

https://twitter.com/peregreine/status/1528282757671051267

1) $CVNA This is a damn good Forbes read about a company which stinks to the clouds where buzzards are circling.

Forbes Headline: Carvana’s ‘Chaotic’ Zoom Firing Caps Company’s Struggles Amid Market Downturn

Subheadline: After letting go 2,500 people, or 12% of its workforce, the online used car seller Carvana faces a moment of reckoning.

https://archive.ph/lH2YA

Behind the mess is a father-son duo who became billionaires riding Carvana’s lightning fast growth to an IPO, and who maintain a tight grip over the company. Ernie Garcia III started Carvana in 2012 as the e-commerce division of DriveTime, the used car and loan business run by his dad, Ernie Garcia II. For years, Carvana’s disruptive online business, flashy car vending machines and growth-over-profits mentality made it seem more of a Silicon Valley marvel than a used car dealer with clever marketing and fundraising savvy.

For Garcia senior, the IPO was particularly sweet, capping his decades-long comeback and public rehabilitation. In 1990, a 33-year-old Garcia pled guilty to a bank fraud charge related to his dealings with Lincoln Savings & Loan, which was controlled by Charles Keating. The thrift’s failure set off a political firestorm because of Keating’s connections with five U.S. senators, including John McCain. Garcia was sentenced to three years of probation, after agreeing to cooperate with U.S. prosecutors.

Today, the Garcias (who are worth a combined $5.3 billion, down from $23.3 billion last summer) control nearly 100% of the voting rights, thanks to a dual-class share structure that gives them outsized voting power. The company’s ownership structure creates conflicts of interest that “may result in decisions that are not in the best interests of stockholders,” the company states in its annual 10-K filing.

That highlighted sentence is the money shot, folks! And yet Twitter was filled with gurus and mavens selling $100 a month “services” to pick “winners” such as $CVNA with self-dealing acknowledged out in the open on their 10-K. All those emoticons on Twitter used by people are usually “hurricane flags ripping off their masts” emoticons in my view (but I’ve never seen that type of emoitcon) which means NO DUE DILIGENCE DONE by the .

The daily chart’s a beauty:

https://twitter.com/peregreine/status/1528282762024730625

2) $CVNA daily, weekly, and monthly charts
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Note: $CVNA closed Friday, 20 MAY 22 @$33.57 per share.

This close is -91.09% from its ATH in the week of 9 AUG 21 @ $376.83

Daily chart:

. . . and let’s not forget her sisters:

https://twitter.com/peregreine/status/1528282766474985472

3) $CVNA weekly & monthly charts

[Cat9MixCloud]

This is perfectly executed brand destruction here.

Maybe $CVNA should hire 2,500 lawyers to replace the employees they fired?

Somebody is going to prison for this kind of law breaking

One laid-off car delivery driver told Forbes that newly hired customer service reps struggled to manage vehicle titles and varying state laws on car registrations: “We [the drivers] would have to face the wrath of customers because we were telling them they needed documents that, if they had a delivery over the weekend, they couldn’t get because their agents weren’t in.”

Similar claims form the basis of a recent class action lawsuit filed against Carvana in Pennsylvania. That suit alleges that Carvana violated Pennsylvania’s Unfair and Deceptive Trade Practices Act by issuing temporary registrations and improperly collecting registration and licensing fees. "Carvana’s failure to timely register the cars as it promised and received money to do — sometimes for a period exceeding two years — causes consumers to be questioned and sometimes arrested by law enforcement while driving the temporarily registered cars,” the lawsuit states.

“We’ve been flooded with phone calls,” says Phillip Robinson, one of the two attorneys who filed the lawsuit, and says over 200 Carvana customers have gotten in touch. “People don’t know where to go to get help.”