Carvana (CVNA)

A fine company with a good CEO. They have periodic plunges then come back.

He bought at $306. It's more about AI disruption, but the recent Gotham City research note about CARV overstating earnings. Tariffs are a strong tailwind, because tariffs are built into the price of cars. Revenues are $5 billion and $1.26 EPS.

Up 109% his year, rapidly, and the valuation is rich, that the company has matured and grown to meet expectations.

He was wrong about this. He bought it on Oct. 31 skeptically, but is up 43% since then. Interest rates are a macro challenge, but they are executing. They will soon join the S&P.

CVNA has bounced back nicely in the past few years. Growth expectations are for 20%+ in the next few years, and analysts expect margin expansion. Analyst estimate trends are rising, it is now profitable, and it generates a healthy amount of free cash flow, most of which is used for buybacks. It trades at a high valuation of 82X forward earnings, but we feel this can compress if earnings continue to grow at a rapid pace. We think it looks interesting here, and would be comfortable buying today while acknowledging its high risks and volatility. 
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Likes it. Don't trade it. Is up 76% this year. You can buy some shares now then more if it declines.

Up 160% in the past year. A fine operator. Always buy on dips.

Has fallen hard, but the new tariffs will be good for their business, driving people to buy used cars. A good CEO.

They were in trouble last year until they got big backing from creditors and reduced their debt. Is up 353% this year.

It is coming back as the used car market picks up. It is an interesting play but keep your position small. He doesn't have all the numbers on it so can't call it right now.

Moving up in a step pattern -- rallies, consolidates at the higher level, rallies, consolidates. A fantastic accumulation pattern, extremely well supported. Now consolidating. As long as it holds above $100 support, it's still being accumulated.

The 5-year chart is very interesting. Massive selloff, huge multi-year base, and now it's broken out. Looking at where it was, looks like it's just getting started longer term.

It reports Wednesday. The stock has a monster short position. There will be a short squeeze, leading shares up in another leg higher. Note that other used companies haven't done well.