Yes, fin review article was a laugh. Fund manager thinking he is doing some 'big short' research by being a driver with Uber. Get Trump to earn 100K+ a year which most would consider ok and see whether he thinks its not enough. Same thing here, wealthy fund manager working in McDonalds will yield the same response.
The problem most don't see is there are a lot more low income earners, mothers wanting extra income, retirees wanting a flexible/casual job and immigrants trying to get ahead in a job that requires max flexability and min fuss while they study... and there is always a stream of these people. Do you think they are members of a union or talk in large groups about a revolt? No. Its not set up for that sort of thing to occur. They just won't drive. This is not happening though.
Even if this happened. There are a line up for more companies to take Ubers ride share market. This business model is not going away and it is winning.
Unless CAB get rid of the need to pay a Cab liscense, introduce a feedback system and make payment possible for all without taking out your wallet/card. They will continue down this path.
Check the fundamentals. Crazy to think they will not be dropping div soon (payout ratio is multiples of what they earn).
This alone will send the stock lower. Let alone the earnings trend. They will be fighting for life soon, at the moment they are on the brink with the stock running up to the long term trend line so great short entry.
Cheers,
Ryan
CAB Price at posting:
$2.30 Sentiment: Sell Disclosure: Held
