there must be some insider trading ...or something hapening at htz this week . it traded 533 million on friday. the turnover is going crazy, if only you got in on it , but we all thinkin its going bankruppt
hi , thanks for your reply. is there any websites that give all the company announcements that you know of. i know the sec.gov gives the company filings....but i was wanting to use something more user friendly. any help will be greatful
Me too. As it's now under chapter 11 bankruptcy protection, we all are thinking correctly. Meanwhile, the FEC authorized Hertz to sell up to $1B of stock. Here is what I speculate to be the mind set of the run-up: Hertz peaked around $45 in 2016. Last year, Hertz averaged about 15 bucks. It's currently trading at $2.83. If Hertz can recover from bankruptcy and re-engage as a viable business, the folks buying stock at $2.83 today look to have a straight shot at $15. That's more than 5x gain. It kind of makes sense, since Hertz was an OK company, before the virus. Once the virus is gone, they should be OK again. They value somewhere between $15~20B. That makes the $1B about a 5% dilution. That needs to be subtracted from the potential gain. They still appear to be in line for a 5x gain. Most companies that enter chapter 11 do not exit. Hertz is not one of "most companies" that have been run into the ground. From where I stand, they appear to be a viable company in a market unaffected by coronavirus. I think that puts the odds of them exiting chapter 11 pretty high. I would certainly think over 50%. So, there is 50/50 shot at a 5x gain. That's a good gamble. It is, however, a gamble. Full disclosure: I don't own or have any plans to own Hertz now or in the future.
Company is in bankruptcy. If the company had income, cash flow, and cash on hand to pay it's debt, it would not be in bankruptcy. Every asset is sold off. Leases at retail outlets, airport counter spaces, real estate, whatever cars left over at further depreciation, every pencil, every coffee cup, every colorful balloon on the car lot. Even the name, logo, and the right to conduct any future business as Hertz. All debtors and lawyers get paid first. There won't be anything left for shareholders. The existing shares are canceled out with a zero ($0) value. If a new Hertz emerges, via the name being sold at bankruptcy auction, the new buyer owns it. Not the existing shareholders. As an existing shareholder, you do not get new shares in the new company.
Hertz was #1. Most lease locations. Largest fleet. Car rental companies make money by selling used cars. They borrow money to buy the cars, rent them for cash flow while they own the cars, then sell the cars and a profit is made. The largest company, with the largest fleet, also owed the most money. Collateral on the loan is the car. The cars depreciated to a value that the outstanding amount owed was more than the value of the car. This is why they are in bankruptcy. Even if they sold all of their cars, and every asset, they cannot pay off the loans.
most locations are at airports or in tourism hubs there was, and probably still is, an agreement to supply rental cars to Ford dealerships as customer loaners with travel being down, airport foot traffic is down, and rental car demand is down with people at home, less driving means less vehicle collisions less people dropping off the car at a dealership for collision repair, and requiring a loaner or rental
Allegedly, this is activity of millennial daytraders using the RobinHood app. Same way GNUS kept jumping all over the board. You buy large volume premarket to create a forward momentum. You use bots to create hype on social media. Less savvy buyers who believe everything on Twitter, Facebook, Instagram.....and don't know what bankruptcy means - jump in thinking they are getting the buy of a lifetime. After you pump up the stock, you dump it. Then everyone who jumped on the bandwagon at the higher prices, gets to lose money as you make money.
Shareholders are likely screwed. https://www.wsj.com/articles/hertz-...lan-threatens-to-wipe-out-holders-11614804329
Thats old news. When ICAHN got bootstomped and cut the losses it was obvious. This thread should have been moved to the OTCs and had a Q placed at the end. Read the post above yours. Its nothing more than a suckers game. Dead cat bounce.
Hertz Global Holdings is set to emerge from bankruptcy this week at a perfect time. And shareholders stand to gain. The rental-car industry is capitalizing on both a domestic travel surge and a vehicle shortage this summer to raise prices. Vacationers are paying $275 a day or more for midsize sport utility vehicles from Hertz in popular locations and $100-a-day rentals are common, double what Hertz was getting in the first quarter. Used-car prices, meanwhile, have surged, benefiting the industry when they sell their fleets. “The rental-car market is on fire, and the companies have found pricing discipline,” says Hamzah Mazari, an analyst at Jefferies. “What used to be a dysfunctional oligopoly is now functional.” Hertz (ticker: HTZGQ), Avis Budget Group (CAR), and privately owned Enterprise control about 95% of the domestic market. Any takers?
It sounds like people who bought the bankruptcy sale will be well taken care of, although probably not the 4x I speculated. The company statement suggested $7-8 worth of value, which would be over 4x but i remain skeptical. Only $1.53 will be cash but the stock and warrants are very interesting. As an investor, i ask myself if management did a good job navigating this existential crisis. Gotta say yes. Company survived. Shareholders not burned too bad. So, i am considering adding htzgq to my portfolio.
Did you get in on this? Did anyone get in on this? HTZ closed today at $18.83. That's not a bad gain, even after the financial gymnastics. It's too bad my investing balls have the courage of a sweaterless chick on a cloudy day in a gentle, 71 degree, breeze.
I am not touching Hertz. It is all a fake out and the windfall is coming. They have been recovering a large chunk of debt by selling stolen vehicles. Purchasing vehicles without requiring proof of ownership, then selling these vehicles to customers. Shit has been starting to hit the fan for awhile but nothing has officially, legally happened that I am aware of.
