Credit Acceptance Corporation
CACC
pitch
short
Steve
Thesis
Credit Acceptance Corporation is recommended as a short due to projected EPS decline driven by flat growth in new loan originations, a declining yield, and increased provisions for credit losses. With a target price of $210, the stock presents a favorable risk-reward scenario with significant downside potential.
Did it work?
worked
confidence: high
The stock price has declined significantly by 88.7%, which aligns with the short thesis that projected EPS would decline due to flat growth in new loan originations and increased provisions for credit losses. The substantial drop in price indicates that the thesis played out effectively, confirming the anticipated downside potential.
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