Key insights
- The author believes the $CAR short squeeze is unsustainable and predicts a price collapse. They argue management will issue more shares to capitalize on the high price, and if they don't, they could face lawsuits. The author intends to short the stock, anticipating a significant price decline. This could negatively impact retail investors holding the stock.
Remember regards, the goal of the market is to make money and not hold worthless paper.
Restricting the supply of $CAR stock is causing a temporary spike in the price.
Whoever is restricting the supply is doing it so that.....drumroll.....sell even more shares at a higher price and eventually dump those high priced shares on the dumb public.
As a matter of fact, management has a fiduciary duty to capitalize on the high price and issue more stock and retire other expensive sources of financing, like debt and other stock classes. So, if they do not dump more shares via a massive offering, they will be sued by current shareholders, i.e. the dumb minority retail traders. There could be a more serious case, if small retail traders can prove that the large shareholders are communicating during this price hike, whether in a fair or nefarious manner.
I will short this shitco down to $100 or below where it belongs.