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HTZ - Hertz Global Holdings

Discussion in 'Stock Message Boards NYSE, NASDAQ, AMEX' started by StockJock-e, May 9, 2016.

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  1. T0rm3nted

    T0rm3nted Moderator
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    Look at the date. 2016.
     
    Syynik likes this.
  2. greenbelt

    greenbelt New Member

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    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
     
    T0rm3nted likes this.
  3. greenbelt

    greenbelt New Member

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    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
     
  4. TomB16

    TomB16 Well-Known Member

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    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.
     
    T0rm3nted and greenbelt like this.
  5. T0rm3nted

    T0rm3nted Moderator
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    Not gonna lie, it's very tempting to make that gamble. Currently sitting at $1.86/share
     
  6. A55

    A55 Active Member

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    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.
     
  7. A55

    A55 Active Member

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    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.
     
  8. A55

    A55 Active Member

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    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
     
  9. A55

    A55 Active Member

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    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.
     

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