They have it from 2008 house flipping enterprises.
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There are more agents than houses for sale. Very lucrative sector to be in right now, haaaa. The amount of competition to get a close isnāt worth it. Eventually this market just like all other markets will correct heavily.
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And in the meantime, while it lasts, buy and sell jeeps, LOL.
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I have friends that are agents and being a buyers agent right now is horrible. They have to write up 20 offers before people get a house. Listings are amazing but for most agents thatās few and far between. Some brokerages are cleaning up shop out there though. I know some are writing bonuses into the contract to keep 10% of the over asking price offers. Real estate agents are mostly worthless IMO, I figured the internet would have weeded that industry out by now but the National association of realtors is very very powerful.
10% of the gross to buy and sell is a major rip off. Kills profits and houses sell themselves these days.
I donāt see any substantial real estate correction absent a financial event. Rates are too low, the market is very high (easy to make down payments with profits) and thereās still a huge shortage. Maybe if landlords are finally allowed to evict tenants that will help with inventory but I donāt see a crash with a large market drop and interest rate hikes to above 4.5-5%
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Weāre due for a correction/rebalancing with the quarter wrapping up, Iāll personally be somewhat passive with my trades this coming week; focus on only 1-2 tickers.
With Bitcoin and other crypto slightly dipping after the Eth options were liquidated Friday; if this continues Tesla will have to report a massive Q2 loss, even if itās on paper. If BTC is at $29,500 at the end of June Tesla will have to report a loss of at least $90M.
Ruh roh Elon.
In other news airlines are a giant flaming pile of trash and keep cancelling flights and Iām not even sure how theyāre staying in business 
NVDA was a monster this week too!
Keep an eye on Cateriller (CAT)and Vulcan Materials (VMC) with the new infrastructure Biden passed.
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Agreed on all fronts except that the NAR was not powerful enough to fend off the SALT deduction cap but it turns out it didnāt matter.
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Yeah thatās def getting reversed and will lead to even higher pricing most likely.
Iāve been burned in the past shorting Carvana stock, cvna, but last week I dipped my toes in for some more and am up about 6%.
Do you guys think they can maintain the sales theyāve had with these shortages? Also with all these companies not allowing them to buy their cars now?
Iām not bullish the American consumer and I know they do no research and pay 10% for auto loans (how Carvana makes their money).
But this company seems way way overvalued and I donāt trust management at all. The ceos dad who heavily invested in the company has been to jail for fraud, of course he got to keep his millions.
I have very tight stop losses on this thing but I think it drops sub 200 pretty quick. If not Iām not willing to risk more then 330 on the upside. I have some puts on it as well.
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I have a strict āno short playsā rule, but I feel like one of these newer car buying services wonāt survive this without some kind of event (bk, acq, restatement, or my favorite flushing the leadership team to put 
on the 
). These balance sheets will not love a market price correction when it eventually hits, they need to clear the lots:
I have a separate watchlist for primary and secondary auto markets, itās interesting to watch how differently their stock prices move.
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Not sure companies like carvana will belly up anytime soon. My brother just bought 45k BMW having 2 year old credit history. APR 4% 72 months. If banks are willing to finance car buyers, carvana will be making money.
On the other hand if comes to investing im heavily invested in WISH. I know its meme stock, but I like it. Im buying lot of merchandise there for my business (small stuff for example POP ITs ) Its way cheaper what my suppliers offer. Once they organize better delivery system this company will be big
Sure but Penfed for instance is 3.39 for 72 months, other banks Iāve seen as much as 3.89. So depending on whether itās their money or not on the lend, itās a quarter to a half point of back-end, which isnāt nothing, but not paying the bills either.
We have lots of reports of the buying services overpaying for cars, so on your brothers (and we canāt know)
- what do thet own it for?
- what was their carrying costs from acquisition to delivery
- total front and back-end gross
The stock prices are not at all reflective of gross/net per transaction, but
- top-line revenue
- bs and cf
- marketshare
- most important, sizzle (car vending machines anyone?)
The question the next 90 days is, how to maintain average transaction margin and revenue while drawing-down their engourged inventories.
And Iām waiting for someone to really get into their cost structures.
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Speaking of Carvana they just paid 5.8 million for a plot of land to build a āvending machineā in Denver. I may have to take a deeper look into the FSās at some point.
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Yeesh a lot of Form 4 stock sales. Skip to the quarterlies for the goods:
Liquidity
The Company has incurred losses from inception through March 31, 2021, and expects to incur additional losses in the future as the Company continues to build inspection and reconditioning centers (āIRCsā) and vending machines, serve more of the U.S. population, and enhance technology and software. Since March 31, 2020, the Company has completed equity offerings of approximately 18 million shares of Class A common stock for net proceeds of approximately $1.1 billion and has issued a total of $1.7 billion in senior unsecured notes due between 2025 and 2028, from which approximately $627 million of the proceeds were used to repay its senior unsecured notes due in 2023. As of March 2021, the Companyās forward flow partner has also committed to purchase a total of $4 billion of the Companyās finance receivables through March 2022. In addition, the Company has a $1.25 billion floor plan facility effective through March 31, 2023. Management believes that current working capital, results of operations, and existing financing arrangements are sufficient to fund operations for at least one year from the financial statement issuance date.
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Whoever is underwriting 1.25B floor plan is most likely on the receiving end of auto loan portfolios or auto loans.
While the auditor ( Grant Thornton ) didnāt flag it as a going concern in 2019, it looks like it came close. Advertising budget is massive as well. States they are looking to sell 2mm cars per year. Ideally at some point it turns profitable.
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Keep an eye on BA (Boeing) this week, just announced United will buy 200 Boeing Airbus aircraft.
Good value rotation.
Also that the 777-x is delayed - again.
I did add BA to my retirement accounts at $178, at this level ($249)? 
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Let the shorts pile up, then let the smart money rip it higher with that booster fuel from the shorts. After the pump, let the BA fly.
Iāve been buying PFE stock and 3-4 mo dated call options on the dips, they are basically printing $$$ with Covid vaccine business and expect this revenue stream to continue longer than most think. In the future may be leveraging MRNA tech for other diseases/illnesses. Have accumulated in the 32-38 / share range. Year end target $45+. . Pays a dividend. MRNA and BNTX are also interesting but they are very high risk/high reward lottery type plays that have already exploded in value.
Not investment advice, DYOR.
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NVDA and FB were monsters today.
Seeing a big uptick in purchases/chatter both options and stocks for ZM and MRNA. With travel being hammered too, itās looking like some big market makers feel Covid will be returning in some manner.
UAVS is something Iām personally going long and adding to until September/November; birdie has informed me of some big news 
.
CARV is officially the most shorted stock at 70% keep an eye on that ticker tooā¦
SPY/QQQ should melt up this week with a strong tech push.
Estate planning needs to include your private keys:
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