EVENTS:   Semiconductors: Bubble Burst or Bear Market Trap? - David Scott/CHA-AM Advisors - 17 Sep 26     ROADSHOWS: US, European and Asian Equity Short Ideas - Robert Prather /Vision Research   •     15 Sep - 08 Oct 26      
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The Cut

Fortnightly publication highlighting latest insights from IRF providers

Company Research

Solvency Risk Model: Best short candidates

Report by Two Rivers Analytics

Carvana (CVNA) - Cash burning, high capex and weak earnings. $5bn of net debt before Adesa acquisition and forced to accept some expensive debt terms to finance the deal.
Life Time Group Holdings (LTH) - Low on cash and not slated to produce excess cash flows any time soon. Estimates are being cut aggressively. Short interest is high at 15% of float.
Surgery Partners (SGRY) - Leverage is very high at 11x forward EBITDA. Growth slowing and the stock is expensive relative to historical multiples (23x 2022 and 20.5x 2024 EBITDA). Has increased share count by 72% over 18 months.

Edition 135 - 13 May 22