Short Credit Acceptance: Approaching A Negative Inflection Point
- Per-unit profitability is declining as industry competition heats up.
- The company has maintained earnings momentum by leveraging up and buying back shares, but this strategy is reaching its limit.
- The market is valuing the company based on unsustainable recent earnings rather than normalized earnings or book value.
- The founder and chairman sees the writing on the wall and has started to cash out.