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  "documentTitle": "Carvana Co. (CVNA)",
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  "authorName": "Kerrisdale Capital",
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  "presentationDate": "2023-06-15 00:00:00",
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  "notes": "The slide critiques the company's reliance on asset-backed financing for liquidity, specifically questioning the valuation and encumbrance of real estate assets.",
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      "text": "In short, $2bn in unpledged real estate most assuredly is not the same thing as $2bn in actual liquidity.",
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      "text": "Stacked bar chart showing availability under short-term revolving facilities and unrestricted cash from 2Q22 to 1Q23.",
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      "text": "Lastly, let's discuss the $1bn in ADESA assets... As well, we can only imagine what sort of usurious interest rate a lender will require to issue new debt maturing after $1bn+ of unsecured bonds...",
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      "text": "Amounts drawn on the finance receivables facility are used to fund intra-quarter receivables... Like the floor plan revolver, the finance receivables facility cannot be used for general operations.",
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      "text": "To shore up liquidity Carvana has dangled monetizing $2bn in unpledged real estate assets... $2bn in unpledged real estate most assuredly is not the same thing as $2bn in actual liquidity.",
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      "text": "Ultimately, new asset-based or secured financing has mixed implications for shareholders. Raising new financing may extend the runway but would saddle the company with even more interest costs...",
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      "text": "Source: Carvana SEC filings.",
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