What do you do when macroeconomic factors beyond your control put a damper on your business? You look to the future and try to prepare for when things will get better.
That appears to be the approach at car trading specialist Cango Inc. (CANG.US), whose latest earnings report reflects a company trying hard to shift gears in the face of major economic headwinds. Cango started out as an auto financier, but is now turning its focus to auto trading and related services like insurance. It also sees a big future in new energy vehicles, which it detailed on its earnings call following the release of its results last Thursday.
Cango shares fell 11% the day after the announcement, and continued to sag after that – not exactly the strongest reception to its ongoing transformation story.