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Credit Acceptance Corporation (CACC)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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420.18-5.39 (-1.27%)
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  • D
    Darrell
    Dec 2021 is the last option available. Why are no new options being created?
  • s
    sam
    NBC evening news trashes company’s lending practices
  • v
    vance
    Be aware that most finance company's have not repossessed any collateral in over a year because of the pandemic. Thats part of the reason why there is a shortage of cars in the market.
  • Y
    Yahoo Finance Insights
    Credit Acceptance is up 6.00% to 418.47
  • Y
    Yahoo Finance Insights
    Credit Acceptance is up 6.24% to 424.45
  • Y
    Yahoo Finance Insights
    Credit Acceptance is down 5.71% to 401.28
  • j
    jf
    It doesn smell good

    Timing of Filing of Quarterly Report on Form 10-Q and Proxy Statement for Annual Meeting

    Credit Acceptance Corporation (referred to as the “Company,” “we,” “our,” or “us”) is relying on the order issued by the U.S. Securities and Exchange Commission (the “SEC”) on March 25, 2020 in SEC Release No. 34-88465 pursuant to the SEC’s authority under Section 36 of the Securities Exchange Act of 1934 (the “Exchange Act”) granting exemptions from certain provisions of the Exchange Act and the rules thereunder related to the reporting requirements for certain public companies, subject to certain conditions (such order, the “Order”), to delay the filing of (i) its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 (the “Quarterly Report”) and (ii) the definitive proxy statement for its 2020 annual meeting of shareholders (the “Proxy Statement”), including information required by Part III of Form 10-K that is to be incorporated by reference into the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (the “10-K Part III Information”). The Company expects to file the Quarterly Report no later than June 25, 2020 (45 days after the original due date of the Quarterly Report) and to file the Proxy Statement, including the 10-K Part III Information, on or about June 4, 2020.

    Our operations and business have experienced disruptions due to the unprecedented conditions surrounding COVID-19 in the United States, resulting in our having to modify the Company’s business practices. Since early March, we have been following the recommendations of state and local health authorities to minimize the exposure risk for our team members, including restricting access to our physical offices. Our management has had to devote significant time and attention to assessing the potential impact of COVID-19 and related events on our operations and financial position and developing operational and financial plans to address those matters, which has diverted management resources from completing tasks necessary to file the Quarterly Report by the original due date of the Quarterly Report and to file the Proxy Statement with the 10-K Part III Information by the original due date of the 10-K Part III Information.
  • V
    Ven
    Is fed buying all the ABS securities?- I am still struggling to understand that retail investors are piling on this.
  • I
    Izzy

    ALERT
    April 07, 2020
    Short More CACC
    Here’s a silver lining to all the mayhem...
    Back in February, we recommended shorting Credit Acceptance Corporation (CACC) and we are already up 36%. The outlook for the company has gotten even worse, and we think the stock will fall further from here.
    CACC loans money to people with low credit scores to buy used cars. As you can imagine, very few people on the low credit spectrum are borrowing money to buy a car right now. The economy is on tilt, unemployment is skyrocketing, and a lot of folks are more worried about paying for groceries than buying a secondhand car—and rightly so.
    The CEO of CarMax, a used car retailer, said same-store sales plummeted at least 50% in the last two weeks of March at most locations.
    In addition, with people losing their jobs, defaults on the loans CACC has already made will make a big jump. And the company will probably end up pursuing repossession, since the cars are the collateral for these loans.
    The problem is the value of that collateral is tanking as I write, because nobody is in the market for a car. So CACC will have to mark down the value of their assets significantly. Earnings over the next few quarters are going to be ugly.
    CACC has seen a lot of insider selling lately too. The company’s founder, Donald Foss, has sold 30,666 shares within the last two weeks alone. The total value of those shares was $8.4 million.
    CACC’s valuation is still too high as well, even after shares dropped 36% over the last month. It’s currently trading at 1.8 times book value.
    This stock should not be trading at a premium to book because the company is probably sitting on a bunch of assets that will become impaired. A book value of 0.75 is a more fitting valuation.
    At 0.75 times book, CACC would be about a $100 stock. That’s about 60% below the current share price—and even that price target may end up being generous.
    Recommendation: Increase your allocation to a short position in Credit Acceptance Corp. (CACC) from 2% to 4% at the market.
  • A
    Anonymous
    Now, in the latest indication that banks are bracing for even more default pain, this time stemming from what even before the coronavirus crisis was the next subprime disaster-in-waiting, namely auto loans. According to CNBC, Wells Fargo is hitting the brakes on its auto loan business, until recently a major source of revenue for the company.

    The bank, one of the biggest lenders for new and used car purchases in the U.S., sent letters to hundreds of independent auto dealerships last month telling them that the San Francisco-based company was dropping them as a customer, according to people with knowledge of the situation.

    Wells Fargo confirmed that the bank, which only makes auto loans through car dealerships, will no longer accept loan applications from most independent shops which typically sell used cars, unlike franchise dealerships that focus on new vehicles from specific manufacturers.
  • J
    Jon
    Citron has called out this stock for an 80% crash. word to the wise - you better get out swiftly.

    "Credit Acceptance Corp – The Black Swan Event
    Citron Predicts Either Bankruptcy or Down 80% as
    Subprime Auto is Forever Changed
    “There are decades where nothing happens; and
    there are weeks where decades happen.”- V.I. Lenin
    Credit Acceptance Corp (CACC) has been a controversial name for years. We have
    avoided opining on the stock because while we didn't feel comfortable with the
    Company's business ethics and practices, we couldn't help but respect the fact
    that through aggressive and questionably legal measures it successfully became a
    profitable lender in the subprime auto market.
    All that has stopped in a matter of weeks and cannot come
    back (and the stock still trades well over book value)
    The economic effect of the COVID-19 virus has become the black swan to
    unemployment in the United States at a pace that defies any stress test or model
    ever conducted by lenders. As you read this thousands of people are defaulting
    on their deep subprime car loans and there is nothing Credit Acceptance can do
    about it. The business is in a death spiral."
    https://citronresearch.com/
    Citron Research has been actively publishing for 17+ years and with over 200 reports, Citron has amassed a track record of identifying fraud...
    Citron Research has been actively publishing for 17+ years and with over 200 reports, Citron has amassed a track record of identifying fraud...
    citronresearch.com
    Bearish
  • I
    Izzy

    UPDATE
    April 23, 2020
    Our CACC Short Is Playing Out as Planned... Plus, Tanker Stocks Rally!
    Our short position in Credit Acceptance Corp (CACC) is playing out well for us.
    In a recent SEC filing, the company said that many consumers are delaying payments on car loans, which has led to a “significant decrease” in the payments they’ve been able to collect.
    The filing also said that management has had to devote significant time to assessing the impact of the coronavirus on the company’s operations and financial position.
    As a result, CACC is delaying reporting quarterly results. The news made the stock tumble 13%.
    Other auto lenders are also taking it on the chin. Santander Consumer USA (SC), for example, has seen a “significant decline” in new auto loans.
    It also expects the coronavirus outbreak to have a “materially more significant impact” on the performance of its outstanding loans than “even the most severe historical natural disaster.”
    Ally Financial (ALLY) said that 25% of its customers are deferring their auto loan payments. Even more startling, 76% of those customers have never asked for a deferral before, and 70% have never been late on a car payment.
    In other words, even people with good credit can’t make their payments. So the situation will be even worse for CACC, since it caters to folks with terrible credit scores.
    Look, we don’t take any pleasure in watching people struggle through an impossible situation. It’s rough out there. But it’s our job to help you protect and grow your wealth no matter what’s going on in the world, and that’s what we’re aiming to do here.
    No surprise, ratings agency Fitch has changed its outlook for the US auto finance industry from stable to negative. It said that rising unemployment could ultimately result in “large operating losses” for the industry.
    Meanwhile, CACC’s founder Donald Foss is still unloading shares. He’s sold approximately $9.6 million worth of CACC stock in the last two weeks alone.
    At the same time, short interest in CACC surged to 12.7% as of the end of March. That means an increasing number of investors are betting against the stock.

    CACC has tanked 38% in the last two months. But it is still overvalued. It’s currently trading at price-to-book of 2.2, while its peer group trades at an average price-to-book of 0.5.
    In short, our bear thesis here is still intact, and we are sticking with our CACC short.
  • J
    Jeroen
    I have a short postition, and I completely agree with all the postings. But, I also have some mixed feelings about the price of the stock. Why it is not going down ????All those things mentioned are also known by other people, and the price of the stock is still above $ 300.-. Maybe current stockholders think that this company will survive, with less competitors. You get more poor people, who will also look for services of this loan shark. Just my doubts for this moment.
  • V
    Ven
    Need info from this group- I am still puzzled by who is buying this. Doesnt look like short covering- Do they know some thing, which as an average investor, I am missing some thing?
  • w
    wthomas68561
    Shares not available for short at Vanguard. If you can get 'em this will be the short trade of a lifetime.
  • I
    Izzy
    This is not a day trade. Earnings in April will not tell the story. October earnings will be a better gauge of CACC issues. I continue to add to my position. Good luck and be patient
  • V
    Ven
    Patient put holder :-(, waiting for July 17 puts, already red :-(
  • I
    Izzy
    I’m guessing many of the buyers are day traders and short covering. REMEMBER if you are short and covering even if you have made a profit Always remember to ask yourself if this is a good buy. Would I be buying this if I was not covering. The inevitable answer in no. Im covering under 100.
  • J
    Jeroen
    Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced a consolidated net loss of $83.8 million, or $4.61 per diluted share, for the three months ended March 31, 2020 compared to consolidated net income of $164.4 million, or $8.65 per diluted share, for the same period in 2019.