Scharfsinn86
It is no secret that the SPAC market is rife with low-quality deals and borderline frauds. At the same time, this basket of securities cannot be overlooked because it regularly generates diamonds in the rough where the baby has been
XCF Global: A De-SPAC With Insider Selling Highly Likely
Summary
- SAFX is a clear short due to desperate deal terms, no cash, and potential insider selling enabled by lock-up waivers.
- The company has defaulted on major loans and lease payments totaling nearly $40M.
- Production issues at the Reno facility mean SAF output will be far below guidance, making prior EBITDA projections unrealistic and future profitability highly uncertain.
- Share dilution from potential daily equity sales and insider exits may continue to crush the stock price.
Former finance professional working in Silicon Valley
Analyst’s Disclosure:I/we have a beneficial short position in the shares of SAFX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.