TrueCar down -27.43%

[v8apps]

I hear a lot of dealers complain about how TrueCar is screwing with them
And that they are a necessary evil

Guess the customers have spoken
TrueCar having problems growing business

https://www.google.com/finance?q=NASDAQ:TRUE
After Hours: 7.75-2.93(-27.43%)

 

[sryan]

LOL they just raised my rates TODAY! (I'm in a monthly fee state)

 

[Jeff Kershner]

Someone is speaking that's for sure. That's a substantial hit.

@JoePistell posted this in a conversation on facebook... sharing on his behalf:

$1,000 invested this year in Autobytel vs TrueCar. Autobytel (ABTL) = $1,4500 vs TrueCar (TRUE) = $300. Painter knows his vision is in jeopardy, but don't underestimate him, he's an amazing entrepreneur - Joe Pistell

 

[Stefan]

@JoePistell is it time to buy TRUE?

 

[v8apps]

So for sake of full disclosure I did buy some options in hopes of this turning around
But from what I read on this forum I think, in search for profit, they have alienated their true customers, the dealership.

If they go back to making sure their customers get wins, I'm sure they will respond inkind

Like @sryan said, you cant increase rates on your customers just because you can, but rather see how you have increased value for your customers and ask if they would be willing to share some of their gains with them(TrueCar)

 

[joe.pistell]

@JoePistell is it time to buy TRUE?

IMO only, Not yet.

TRUE's problem connects to Painter's vision. Had the vision worked, the TV ad spend would create so many sales that it would create a profit. But, TrueCar has a poorer conversion rate than they needed. So, it's back to the drawing board...

• Is the vision un-fixable?
• What will Painter do to fix it? (a bandaid or completely new model?)
• How long will it take to fix it?
• Will the board keep Painter? (what a wild ride Painter's taken them on)
• Can any new leader fix it?
• Autonation has left, will other large groups jump off?

The vision is in jeopardy, Lot's of unknowns ahead. Wall Street hates this. That being said, keep an eye on it, if a solution is found, Wall Street will be watching the revenue & profits as proof that Painter's fixed it.

 

[joe.pistell]

TRUE's biggest investor? USAA http://biz.yahoo.com/t/42/630.html

p.s. Lot's of work ahead for Painter & Co. http://finance.yahoo.com/news/goldman-concerned-truecar-headwinds-removes-184110305.html

 

[yagoparamo]

Will they need a new influx of cash in the short term and not get it this time?

 

[joe.pistell]

Will they need a new influx of cash in the short term and not get it this time?

At 1st glance, They'll be fine. Total cash on hand is $143mill w/ $26mill in debt.
http://finance.yahoo.com/q/ks?s=TRUE+Key+Statistics
They're not profitable, I don't know what the burn rate is (at the current rate of spending, how many months of cash is avail?)

I'll assume Mr Painter will pull back costs until he and his team come up with the new battle plan.

 

[Jose Galvan]

TRUE's biggest investor? USAA http://biz.yahoo.com/t/42/630.html

p.s. Lot's of work ahead for Painter & Co. http://finance.yahoo.com/news/goldman-concerned-truecar-headwinds-removes-184110305.html

So that explains the USAA True Car rebates.