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LOTZ

Lotz ending diagonal Lotz is finishing up a 5 wave ending diagonal with bullish divergence. Selling pressure has subsided and short interest is very low. Share price should be about $1.60 if it was reflected by company's cash on hand. As we can see that is where a very active price block is ($1.60-$2) which I believe we will be retesting by EOY. Chip shortage has greatly improved and actually is starting to turn into a surplus in some industries. Biggest news of all is senators are expected to convene as early as Tuesday (7/19) to vote on a bipartisan competition bill to set aside $52 billion to boost domestic semiconductor manufacturing and give tax credits for production. This would solve a inventory problem for vehicle manufactures which has created the bubbling of price on used vehicles, which in turn has limited inventory and killed sales for various reasons. Good Luck.
LLong
by RichardSlanger
VRM 35K calls block expiring soon! Extremely Bullish !!Yesterday i was amazed to see a block of 35K calls worth of $525K on VRM expiring May 20. And i will explain to you why they might be extremely profitable! Since its highs, VRM lost 97.76% of its value and it`s not a crypto, by the way, it`s a company that makes billions of dollars. The calls are related to the first Quarter earnings on May 9, so they expire 11 days after the results. What should we expect from the earnings? - revenue growth! last quarter their Ecommerce revenue was $738.7 million, up 159% year over year; gross profit was also up a lot, 64% YoY! - a strong financing business! On February 01, 2022, Vroom announced the successful completion of its acquisition of United Auto Credit Corporation (UACC), a proven leader in automotive finance for $300 Mil. Soon after the news above was released, on 2/3/2022, Bank of America set a price target for VRM of $30.00 So how come it is trading at $1.62??? Well, 27.11% of the share float is Shorted! Big institutional owners like Vanguard, Blackrock, Morgan Stanley, JPMorgan Chase have average entries at $40! And many of them had recently averaged down their investment, like Goldman Sachs which reported on 2/17/2022 an increase of 104.5% in their ownership in VRM, respectively 1,753,977 shares worth $18.93Mil for a total of 1.281% of the company. Their average is now $22.55. So if they are happy with a 22 average, how come we don`t we buy it at $1.62? VRM has a Price to book ratio of 0.24 now. A P/B ratio less than 1 means that the stock is trading at less than its book value, it`s way undervalued! the Price to Sales ratio is only 0.07! By comparison, its rival, CVNA (Carvana), has a P/S of 1.16. Based on Q4 Financials, If they liquidated the inventory, cash in on all receivables and pay off the $600M senior note, each shareholder will receive approximatively $6.5 per share. If we look at the daily timeframe, VRM formed a falling wedge pattern which is extremely bullish as you know, on an oversold area, 25 on the RSI. Institutional ownership in VRM is high, 92.19% 52 Week Range 1.58 - 48.80 Market Cap of only $235.47Mil! Can be a buyout at this point! 2021 Revenue: $3.18Bil All things considered, fundamental and technical analysis, i think that the 35K calls will be in the money, extremely profitable, by the time of expiration. My short term price target for VRM is $5.5, i think it`s trading so low because it`s heavily shorted by the hedge funds, to have a better average on their entry. Looking forward to read your opinion about it!
VLong
by TopgOptions
2
LOTZ $7 - Diamond in the RoughCompany still in the phase of proving its consignment business model to investors, but earnings have been a consistent upward trend and are currently hovering near breakeven. Significant expansion plans for 2021 were scaled back and pushed out due to the chip shortage impacting inventory availability. Relatively low overhead for each new location, growth could come fast and furious once management is ready to pull the trigger. Investors will reward LOTZ's sustainably profitable business model. Targeting $7.
LLong
by Big-Worm
3
LOTZ to Bool me I think LOTZ has bottomed finally, I'm thinking it gets back to $5 area without too much trouble by their next ER. It's been caught in the small cap wasteland bleed tax loss harvesting that every other stock under $10 has suffered. CEO is like GOEV CEO in that he doesn't pump, so it can be frustrating. They have been expanding quite a bit thru covid but they're being traded like a legacy company circling the drain instead of a disruptive new comer. This to due to 1. the "just keep shorting deSPAC's no matter what" crowd , also similar to what GOEV has suffered - 2. the chip shortage has caused used cars to escalate in price, which might net them some more margin per car sold, but their model is best with high volume lower margin. 3. As I said, a quiet board of directors who haven't been buying any shares at ATL, plus I think their pitch decks were overzealous - the vibe on fintwit is they all need to be taken out back and executed. 4. During Q3 they pulled back some of their rollout guidance for new hubs, but they are still growing fast - just not as fast as carvana Their last ER was promising and showed some signs of turning around. I am actually shocked with how it has continued to not only bleed but absolutely dump since then. As I said, I think its due to tax loss harvesting + market sentiment. Even in the face of another lock down style situation, auto makers will not make the same mistakes again and cancel chip orders. The shortage of cars is at/near its peak (IMO). If we look at the blood bath that was the market today, LOTZ actually closed up 1.6% - it seems to be its bottomed finally, been bouncing in the 2.96 - 3.15 all week long. I think it has a good risk/reward ratio right now leading into their next ER. Im not sure if I would hold thru that ER, but Im anticipating a run up back into it to the $4-5 range. I wouldn't bet the farm on it, nor would I get any short dated calls unless that tickles your fancy. I think best play are the options LOTZW and also to sell CCs on rips and buy em back on dips - I dont think it's going take an elevator back up. sector MCs: LOTZ - 360M SFT(shift tech) - 385M CARS (cars.com) - 1.11B VRM (vroom) - 2.13B CVNA (carvana) - 50.3B KMX(carmax) - 23.63B AN(autonation) - 8.3B LOTZ cash position is pretty good so basically half their MC is cash right now They are actually at risk right now of a hostile takeover. My position for transparency: 15k shares at 3.92 9k shares at 3.86 3k warrants at .68(only just realized these were available this or last week, sold off some shares to buy warrants with) TLDR: buy now for a short play to 4.30 - $5 area. Long term, I think it gets back to 7.5 range within a year - if this next Q confirms the rebound
LLong
by PortfolioSaver20