SFT - Shift: The Clock Is Ticking. Going Bankrupt Or To The Moon?
- In my opinion, Shift is being priced for an imminent bankruptcy, with the used auto e-commerce platform's stock trading at ~1x cash levels.
- While Shift's liquidity situation remains challenging, the business is performing within management's guideposts, and the outlook for 2022 remains unchanged despite macro challenges.
- In this note, I discuss Shift's Q1 2022 results and its liquidity position. Furthermore, I lay out the binary nature of this bet.
- I rate Shift a strong buy at $1 per share due to the asymmetric risk/reward on offer.
For further details see:
Shift: The Clock Is Ticking. Going Bankrupt, Or To The Moon?