The clues were all there that it would be a great short:
1) First the business model: "mutton dressed as lamb" when management claiming that Carvana is the Amazon of cars and still just peddling used cars but doing it online, but trying to dress it up as a unique new business model. Particular problem with CEO's of a certain age and experience!
2) There is a convicted fraudster very involved in the business, so there is significant risk in the business! There is generally a high level of repeat offending with criminals, so there is that risk too.
3) The use of creative accounting to manipulate the financials of the company was another tell sign.
4) High levels of insider selling in young unprofitable IPO's was another tell sign!
5) And as we all know that just like one can never trust bankers or politicians you can never trust a used car salesman!
You can always bet on human nature! What a great short! The Carvana con!
