I just bought June $230 puts in Carvana (CVNA), whose recent price activity is featured below, augmented by the oh-so-innocent grin of its convicted felon founder (who had to have his son be on the paperwork, what with the prison sentence and all). The company has been, for the moment, insanely successful, and it is sporting a price/earnings ratio measured, quite literally, in the quadruple digits.
The longer-term chart shows the eye-popping rise of this beast over the past couple of years, which was on the heels of the almost complete annihilation of its market cap.
At the start of this month, pretty much the last “watchdog” organization specializing in short-selling, Hindenburg Research, published a damning report about CVNA. A few of the highlights from their report are shown below.
Oddly………..quite oddly, I would say……..just days after the report about a business founded by an ex-con was shared worldwide………Hindenburg Research decides, out of the blue, that it’s time to close up shop. Was there a late-night visit? Physical threats? Who knows? It’s a bit suspect to my eyes.
So, what is going on?
- Kynikos (Jim Chanos) – shuttered
- Citron Research – shuttered
- Hindenburg Research – shuttered
I’m all you have left, Earth. Just me.
Otherwise, you can just prance around with the likes of permabulls like Zerohedge and Tom Lee and embrace the fact that the stock market is just scrumptious.
