I Very Rarely Short, But I Am Making An Exception For Navitas Semiconductor (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Navitas' 380% rally following the NVIDIA collaboration news is speculative, with no clear near-term commercial impact on revenues. The collaboration is also non-exclusive to Navitas.
• The company suffers from poor revenue execution and increasing competitive intensity that exposes lack of competitive moat. Its business model is also shaky with high customer concentration and churn.
• Navitas is burning cash rapidly and has limited funding runway. The insiders have been dumping stock after the explosive price rise that places NVTS in very frothy valuation territory.
• The relative technicals vs. SPX500 also show signs of the bulls halting at a monthly resistance level.
• I conclude that NVTS is a compelling short opportunity. Key risks to watch out for would be a short squeeze if short interest gets too high and decent conversion of customer pipeline into real, tangible orders.

Read the full article here.