Very few finance companies survive long term selling subprime/near prime ABS portfolio tranches structured to accelerate revenue recognition. It would be helpful for you or a forensic accountant to investigate the related party contracts and affiliations with family members to test the Chinese fire wall that allows 100% up front revenue recognition while compiling financial results
It doesn't require a forensic accountant to calculate that the reported numbers by the company on a per unit basis appear to defy reality, when compared with peers such as Carmax and conventional used car industry metrics. The way the scheme appears to work is via converting class B shares into class A and monetizing them onto the market at a rapid clip, and likely using the proceeds, in part, to underwrite the related-party losses, which all take place beyond the scrutiny of public reporting. To confirm this, just look at the astronomical count of insider sales.
To support your scheme theory, the Garcia's have sold billions in Carvana stock. Recent Form 4 filings show continued sales through trusts (e.g., Irrevocable 2004 Trust III, Multi-Generational Trust III) at prices exceeding $340 share & these sales are not tied to 10b5-1 plans, and these sales often cluster around liquidity crunches or debt restructuring windows. Everything points to the Garcia’s using the proceeds to prop up the non-related entities to avoid disclosure. That’s where the SEC investigation is headed imo
Another major bankruptcy in the auto business, First Brands Group filed chapter 11 (&10B) banks are finding SPEs were hiding assets, pledged assets and losses. The market is still shook from Tricolor Auto Group bankruptcy (fraud) and Carvana shareholders should be aware. Carvana uses SPEs and Bridgecrest services $20b in Carvana loans with opaque performance reporting. It’s been reported by the unicus investor that Bridgecrest is masking performance, extending more loans than are being cured and repos are expanding rapidly. Banks are tightening and liquidity is evaporating. I guarantee the contagion hitting the auto industry will result in cvnas banks demanding audits and transparency - CVNA Q3 earnings report could be ugly banks
Not to mention car sales to Drivetime and large over refunding of finance paper products on repos. Extending terms on delinquent loans to hide the level of bad loans on the books.
Very few finance companies survive long term selling subprime/near prime ABS portfolio tranches structured to accelerate revenue recognition. It would be helpful for you or a forensic accountant to investigate the related party contracts and affiliations with family members to test the Chinese fire wall that allows 100% up front revenue recognition while compiling financial results
It doesn't require a forensic accountant to calculate that the reported numbers by the company on a per unit basis appear to defy reality, when compared with peers such as Carmax and conventional used car industry metrics. The way the scheme appears to work is via converting class B shares into class A and monetizing them onto the market at a rapid clip, and likely using the proceeds, in part, to underwrite the related-party losses, which all take place beyond the scrutiny of public reporting. To confirm this, just look at the astronomical count of insider sales.
To support your scheme theory, the Garcia's have sold billions in Carvana stock. Recent Form 4 filings show continued sales through trusts (e.g., Irrevocable 2004 Trust III, Multi-Generational Trust III) at prices exceeding $340 share & these sales are not tied to 10b5-1 plans, and these sales often cluster around liquidity crunches or debt restructuring windows. Everything points to the Garcia’s using the proceeds to prop up the non-related entities to avoid disclosure. That’s where the SEC investigation is headed imo
Love the discussion!
Another major bankruptcy in the auto business, First Brands Group filed chapter 11 (&10B) banks are finding SPEs were hiding assets, pledged assets and losses. The market is still shook from Tricolor Auto Group bankruptcy (fraud) and Carvana shareholders should be aware. Carvana uses SPEs and Bridgecrest services $20b in Carvana loans with opaque performance reporting. It’s been reported by the unicus investor that Bridgecrest is masking performance, extending more loans than are being cured and repos are expanding rapidly. Banks are tightening and liquidity is evaporating. I guarantee the contagion hitting the auto industry will result in cvnas banks demanding audits and transparency - CVNA Q3 earnings report could be ugly banks
Not to mention car sales to Drivetime and large over refunding of finance paper products on repos. Extending terms on delinquent loans to hide the level of bad loans on the books.