Short

CACC SHORT Credit non acceptance corp

Updated

So my first short and believe it or not I shorted this many moons ago at 40 covered at 20 but then went to single digits. The thesis has always been simple - They are a lender of last resort for auto buyers and yet the companies bonds are rated AAA - how do they do this - insurance on their stuff followed by reinsurance followed by reinsurance. Interesting story so when they were in the single digits for years about to go belly up they exclaimed "we found a new way to account for things that will help us reemerge" they sure as hell did. They report Wednesday after the close. I still believe this company is an accounting fraud. Look at the glowing consumer reviews they get as well.
consumeraffairs.com/finance/credit_acceptance_corp.html

Note

I would take 1/3 off the table. the run from the 100's to 400's was a short squeeze which perhaps reached its climax because SI it at the lowest its currently been in over a year, ie. the short squeeze worked just not sure if there will be a round II. The investigations are continuing, they lost their patent in 2017 and yet the stock went up, as their competitor Westlake sued them and won. How did CACC react, lol it went vertical so my feeling is take some money and run and leave a small position w/ a stop loss.

Hatchetaxe

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.