SFT Set to Spike as the Top CVNA Sympathy Play

Carvana Co. (CVNA) has rocketed from the $4's to as high as $19 over the last month as a turnaround and short squeeze play. Shift Technologies, Inc. (SFT) is finally starting to move as a junior version of CVNA's online used car dealership service. SFT rose 33% on 26 million volume today. This is a follow up to last week when the stock saw a consistent increase in price and volume. It's still early in its run, and so far hasn't had that much volume for a stock under $0.50, so it has potential to move a lot more if it becomes really popular. This chart summarizes both the squeeze potential and the fundamental value of CVNA and SFT:









In terms of short squeeze ability, SFT has high potential like CNVA. CVNA has a 65% short interest as a percentage of the float, and we have seen how much it has squeezed lately. SFT is just starting its squeeze and has a 31% short interest. 

On the fundamental side, CVNA had over $14 billion in revenue over its previous four quarters. Compared to a $2.3 billion market cap, it has a price to sales ratio of only 0.16. But when looking at SFT, it has an even cheaper metric of 0.08 as it generated $801 million in revenue over its previous four quarters but has just a $62 million market cap. It has to double just to come in line with CVNA's valuation. We expect that double to happen soon. 

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