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Cango Inc. (CANG)

NYSE - NYSE Delayed Price. Currency in USD
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5.34+0.22 (+4.30%)
At close: 4:00PM EDT
5.46 +0.12 (2.25%)
Pre-Market: 04:33AM EDT
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  • O
    Onions
    Li Auto is doing really nice again! This should impact next earning strongly their balance sheet
    Bullish
  • C
    Clay
    CANG earnings out and look awesome. Revenues up 357%, grew cash, sold off some LI Auto but still have plenty of shares, projecting 900-950RMB revenues this quarter. Chip shortage is a risk but they sell/finance plenty of used cars too! LI Auto mark to market caused small loss otherwise would have been a profit. LI Auto is much higher than at end of last quarter so just a paper loss. CC @ 9pm ET tonight.
  • O
    Onions
    Seems Li Auto is improving significantly which was the main reason for net loss last quarter. So I assume we will have some good days ahead
  • A
    Anonymous
    Cango's ER:
    *The Year-on-Year comparisons increases are meaningless as China was shut down 1st qtr 2020.
    *Top line revenue only increased by 2% from 4th quarter 2020
    *2nd quarter revenue is projected to DECREASE by 20% from RMB1,123.8 million to RMB 900 million
    *Chip shortage expected to have material impact for the rest of 2021
    *Vague mention of "changing regulatory environment". The fact is CANG is in non-compliance with HFCA and will be delisted by 2024 if they do not remedy and allow U.S. audits by PCAOB of their balance sheet.%
    * 1.3% margin on car trading transactions needs to improve
    *Management is very explicit that they will do what's best to grow the value of their company; not return value to shareholders. Buying all outstanding shares, delisting from U.S., and a new IPO in Hong Kong would probably be most advantageous.

    This stock is stagnant and dead in the water for 2021, at best. Just look at the sell-off after earnings to know what the market thinks of CANG. Hopefully 2022 will be better for them, and CANG shareholders, if they are still listed in the U.S.
  • A
    Anonymous
    Well, I'm getting the sinking feeling they may buy back all their stock and take the company private. The $50M that was allocated to buy-back stocks could buy back the float of 22M shares for $2.50. This is not unheard of for Chinese companies listed on American exchanges who feel they are undervalued. Then, they go and list on another exchange like Hong Kong with a new IPO and higher valuation. The article below is informative in this regard. If I don't hear anything on the May 31st call about remedying their non-compliance with HFCA - which would lead to de-listing from American exchanges - I'll assume that's their plan. As it stands right now, there's a 3 year ticking clock towards de-listing for CANG. I even emailed the covering analyst at Goldman Sachs to bring up this issue on the call, but not sure it will do much good.
    https://finance.yahoo.com/news/how-u-slisted-chinese-companies-are-squeezing-out-minority-investors-172606715.html
    How minority American shareholders “squeezed out” by U.S.-listed Chinese companies.
    How minority American shareholders “squeezed out” by U.S.-listed Chinese companies.
    finance.yahoo.com
  • r
    ronr2016
    Resurgence of the variant virus may impact China's economy and perhaps CANG's bottom line.
    Bullish
  • r
    ronr2016
    The uncertainty of how the virus variant will impact the economies worldwide and put pressure
    on stocks in general especially in China!
    Bullish
  • j
    junjie
    Pardon me, but as much as the revenue increasing, prospect looking good, can anyone explain to me why is their assets decreasing and their liabilities increasing?
  • Y
    YM
    I don't like Chinese stocks but this stock is too attractive.
  • E
    Eric
    Marketcap 839M.
    Cash 249M + Li 914M = 1,163M.
    So basically you get the profit making and growing company for free!
    What a joke. :-)
  • A
    Akram
    32:26% shares held by institutions
    32:26% of floating shares held by
    Institutions what does that indicate.
    Bullish
  • A
    Anonymous
    CANG, LI, XPEV, NIO are all at their Oct/Nov 2020 price levels.

    There is no demand for CANG stock, ie; options not allowed so no attempts to cover positions. Low short interest, so no shorts buying to cover positions. No stock buy-back by the company itself. No recommendations to speak of, other than Dr. S. from Stansberry who essentially pumped and dumped the stock in Jan/Feb. Every time there is a rise in the stock "trapped buyers" unload their shares sending the stock down. The company has a fundamentally strong balance sheet, but imo be prepared to buy and hold for the long term, until the stock is accumulated by the company itself and institutions.
  • F
    Fekadu
    Cash on balance sheet $650M. Market cap $830M. It's a cash cow.
  • A
    Anonymous
    oh, forgot to mention....no mention of stock buy-back either. I think they are gonna use that $50M to buy back shares and go private.
  • O
    Onions
    The company cash flow is immense and can absorb a lot. It should be very bullish today!!!
  • A
    Anonymous
    Question to author of Seeking Alpha article:

    "My main concern is with the Holding Foreign Companies Accountable Act (HFCA) which was passed in December 2020, but which the SEC just implemented in March. I think you alluded to it in your article. Cango must allow the Public Company Accounting Oversight Board (PCAOB) to audit their reported financial results. The PCAOB keeps a list of foreign companies who have not complied, and they have 3 years to comply or be delisted. Cango is on the list. Their complicated ownership structure probably prevents Cango from complying due to the possibility of having an audit take a detour in other directions and into other parties which may not desire a U.S. audit. What are your thoughts on this as a headwind to accumulation and the stock price rising in the future? To your point, if the stock is not accumulated by index fund investors or institutions, there's limited demand for the stock and the price will stay stagnant. Or, do you think in spite of the risks mentioned above investors could begin to take notice?"

    ANSWER:

    "HFCA is a definitely a risk here and there's no easy way to know where this development will land in the long run. With a very reasonable valuation and a strong growth outlook, I'm willing to give CANG a year or two and see if the investment thesis plays out. However, I could also see where the HFCA risk could turn away potential investors. I'll be running this race with CANG, but certainly won't have all my eggs in this basket."
  • O
    Onions
    Insane revenue growth! Unbelievable! Now is all about expansion and to build solid fundaments for the future. a great company!!
  • A
    Anonymous
    This is an article on CANG from Seeking Alpha May 17th. I also wrote a question to the author and he responded. Bottom line, there's alot to like about CANG as a business, but alot of risk associated with the stock because of the Chinese ownership structure, not allowed to be part of an index in the U.S. , and possible delisting.

    https://seekingalpha.com/article/4429278-cango-rapidly-growing-under-radar-saas-auto-tech-stock-triple-digit-return-potential
    Cango has strong management, a unique product and significant market opportunities ahead. The stock could potentially hit triple-digit returns over the next two years.
    Cango has strong management, a unique product and significant market opportunities ahead. The stock could potentially hit triple-digit returns over the next two years.
    seekingalpha.com
  • E
    Eric
    And today, we have a network of nearly 50,000 registered dealers nationwide, making Cango a leading technology-based automotive transaction services platform in China.

    Building on this solid foundation, we are actively expanding the upstream and downstream of industry value chain, extending our reach to the car trading transactions and aftermarket services facilitation segment, pressing to forward toward the goal of better serving customers and the auto industry as a whole.
  • F
    Fekadu
    great article on Seeking Alpha today about CANG