Carvana Co. operates an e-commerce platform for buying used cars in the United States. It purchases, reconditions, sells, and delivers vehicles to customers through its Website. The company was founded in 2012 and is headquartered in Phoenix, Arizona.
They have one in Nashville Tn. Neat place, the showroom is a multifloor round glass building on a turntable, they put the vehicles on a elevator and put them on display. It's located beside I-65, great location. I'm sure they do well, unique concept.
On watch - nice little bounce today - Carvana Expands Its Presence in the Volunteer State, Launching Chattanooga and Knoxville Markets - https://finance.yahoo.com/news/carvana-expands-presence-volunteer-state-100000664.html
The multi-story dispensary with the "coin slot" is an expensive gimmick but probably has value as an advertising hook. It is in fact just another used car lot. Having used car lots is not all that Carvana has in common with the mounting competition in the online used car space. Carvana appeals to sub-prime borrowers who are often happy to finance a vehicle and don't have a lot of choices. It's the old bad-credit-no-credit sales approach but one has to wonder who holds that paper? Seems to me you want to have extreme transparency given this is a publicly traded company. Aside from the ongoing crush of competition, it doesn't appear that CVNA can ever stop losing money. To grow revenue they have been losing more and more money, having already lost not just tens or hundreds of millions but thousands of millions of dollars with no end in sight. CVNA has no moat nor does it hold an iota of advantage over what any existing dealership group can offer. It's one of dozens if not hundreds of online used car lots, and has all of the attendant baggage of use car salesmen trying to make a buck. Probably worst of all is the number and nature of the small outfits pushing this paper on naive clients blinded by slick sales pitches about the Internet, e-commerce, AI and other now 25 year old mainstream concepts. I see this ending very badly for investors.
This has been showing strength, with the yield curve inverting today. Revenues have doubled since just last year.
One just popped up off the 405 freeway in Orange County. Couldn't figure out what is was going to be when it was being built. Has cars in it as of yesterday.
Remember CarMax? The "No Haggle Car Buying Experience"? Well, I see a possibility in Carvana. They just opened a vending machine near me and I see the Carvana vans with vehicles on them occasionally. I have this on watch. I think it has real possibility if only for the unique buying experience they provide. PS; CarMax made me a lot of money....
I though it was a car museum at first. This one was nice, had some nice rides. 2020 baby, order your car online out of a slot machine, hell , they deliver if you want.
Hoping my cash clears before too long. I like them as a long and this sell off makes me want to go drop a giant coin in a giant vending machine!
In at about $40.45. Long term hold for me, if I can free up some more cash these next few months I'll add to them.
Nice move today, I like the increased volume. Was pondering a sell so I can buy back under 40, but I really should just stop getting in my own way sometimes.
The avg daily volume is increasing, AND there were two big insider buys this week. I'm still in, but put a 'Pie-in-the-Sky' limit sell to take advantage of this nightmare situation.
The volume is starting to drop. I think this is a definite Sucker's Rally, so I set a limit sell. Hope it hits before EOD.
