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As Hertz Gets Delisted, It Does Not Belong In Long-Term Portfolios
Vehicle rental company Hertz Global (OTCMKTS:HTZGQ) and Hertz stock is no longer traded on the New York Stock Exchange. On Oct. 29, Intercontinental Exchange (NYSE:ICE), which owns the NYSE announced, “the staff of NYSE Regulation has determined to suspend trading in the common stock of Hertz Global Holdings, Inc. (the “Company”) — ticker symbol HTZ — from the NYSE.” Source: Shutterstock The pandemic had a significant effect on a number of sectors, such as travel and leisure. The car rental sector relies heavily on air travel as many passengers rent vehicles at airports. Recent research has studied the “Impact of COVID-19 on Global Car Rental Industry and Ride and Share Transport Services.” The authors highlight, “The pandemic led to Hertz filing for bankruptcy, albeit after paying US$16 million in retention bonuses on the eve of bankruptcy to its executives. Losses led to various cost-containment measures, which saw a record number of employees being laid off and disposal of non-core assets.”InvestorPlace - Stock Market News, Stock Advice & Trading Tips Florida-based Hertz Global is more than 100 years old. Its vehicle rental brands worldwide include Hertz, Dollar and Thrifty. When a publicly-listed and well-established company like Hertz declares bankruptcy, it is not always emotionally or financially easy for shareholders to accept what that means for the common stock. Therefore, today’s article will discuss what investors in Hertz stock may expect in future months. Shareholders Have the Last Claim Not every travel or car rental company has gone bust during the pandemic. For example, Avis (NASDAQ:CAR) is up more than 12% year-to-date. 7 Retail Stocks That Will Benefit From 2020’s Holiday Shopping Season Steve Ford of Advanced Applied Project Management Solutions explains the demise of Hertz clearly: “Hertz had, in recent years, taken on more than $24 billion in debt, primarily due to corporate acquisitions and car purchases. This debt was set against a cash reserve of $1 billion… With the onset of COVID-19 … Hertz lost all revenue.. Unable to pay its creditors, Hertz filed for Chapter 11 bankruptcy protection on May 22, 2020.” We would add to this analysis that U.S. corporate bankruptcy laws determine who gets paid first. Shareholders have the last claim on assets. In most cases, they receive nothing. InvestorPlace.com contributor Mark R. Hake recently wrote about the delisting of Hertz stock and concluded, “This is an indication that Hertz stock has virtually no value and no one should be buying it… There’s nothing left for owners of HTZ stock.” Put another way, current investors in Hertz stock are not likely to get any money at the end of the bankruptcy. Earlier in the year, even billionaire investor Carl Icahn, who used to be the largest shareholder in Hertz stock, sold his holdings, representing a 39% stake in the car rental group. In the coming weeks, there could still be speculative trading with an up bias in Hertz stock. Yet, current shareholders should not get their hopes high. In fact, on Oct. 16, shares traded intraday between $1.67 and $2.86, on high volume with no apparent news or reason. Suggestions centered around algo program traders and Robinhood speculators. However, the shares are currently around $1.05. Bottom Line on Hertz Stock The recent delisting of Hertz stock was a negative development for Hertz shareholders. The group used a complex corporate structure and had extreme levels of debt, which led to insolvency during the rough months of 2020. Various negotiations and court proceedings leading to Hertz’s eventual bankruptcy will likely take more time. It is also a high-level bankruptcy, getting media attention. However, current investors in Hertz stock should appreciate that the shares will likely end up worthless. If I were a shareholder, I would sell now and get out completely. If I were a short-term trader, I would not speculate on Hertz stock. Our markets offer ample opportunities in robust asset classes or stocks both for long-term investors and short-term traders. But Hertz stock is not one of them. For example, those investors who are interested in speculative companies may consider investing in the high-yield corporate-bond market. They can use exchange-traded funds (ETFs) to buy into these junk bonds. Examples of such ETFs would include the Credit Suisse High Yield Bond Fund (NYSEARCA:DHY), the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEARCA:HYG), or the SPDR Bloomberg Barclays High Yield Bond ETF (NYSEARCA:JNK). On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. Tezcan Gecgil has worked in investment management for more than two decades in the U.S. and U.K. In addition to formal higher education in the field including a Ph.D, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets The post As Hertz Gets Delisted, It Does Not Belong In Long-Term Portfolios appeared first on InvestorPlace.
InvestorPlace · 11/13 17:27
Hertz Stock: Its Time To Let This One Go Already
InvestorPlace · 11/13 15:44
Hertz Global Holdings, Inc. reports Q3 results
Hertz Global Holdings, Inc. (HTZGQ): Q3 Non-GAAP EPS of -$0.44; GAAP EPS of -$1.42.Revenue of $1.3B (-53.6% Y/Y)Shares +0.8%.Press Release
Seekingalpha · 11/09 21:59
Hertz Stock Too Bruised by Bankruptcy to Buy
Just hours before Halloween, hapless investors in Hertz (OTCMKTS:HTZGQ) got the rudest of awakenings, not that it was a shocker. On Oct. 30, the New York Stock Exchange delisted Hertz stock, which had traded there since 1954. And the once mighty rental car colossus — which fetched more than $100 per share as recently as 2014 — ended the day at 65 cents per share. That’s not a trick or a treat: It’s a tragedy that…wait for it…really Hertz. Source: Eric Glenn/Shutterstock.com There can be zero doubt that this descent into penny stock hell was aided, abetted and accelerated by the novel coronavirus. Seldom if ever has something invisible to the eye caused so much visible economic harm, and the wreckage smolders everywhere investors look. When entertainment, restaurants, air travel and hospitality joined the list of savaged sectors, they also sent shock waves out to rental car companies with Hertz arguably hit hardest of all. Yet the story of Hertz stock and its turbo tumble has more moving parts to it than just Covid-19. Between the summers of 2014 and 2017 — not exactly desert gulch years for the U.S. economy — Hertz shares lost 93% of their value. Now as Hertz tries to flat-tire it out of bankruptcy, the question may well be not how much potential the Florida-based company has, or has left, but how little.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Hertz Stock in a Bankruptcy Fender Bender Some things money can’t buy, let alone rent, and in the case of Hertz stock, investor confidence in any form might be a thing of the past. You could say on the one hand that Hertz was hogtied given what the pandemic did to it. But the signals sent to shareholders in the spring weren’t exactly reassuring either. 7 Augmented Reality Stocks To Buy Now For The Future On May 18, President and CEO Kathryn Marinello resigned just four days before a deadline to restructure leases for the Hertz rental fleet with lenders. A statement from Hertz chairman Henry R. Keizer that introduced the successor, Paul Stone, contained some unintentional black humor: “The Board elected Paul to lead Hertz’s next chapter.” As in Chapter 11 bankruptcy! Of course! Since Marinello’s departure, Hertz stock has shed another 75%. Can there be any bright spots in all of this? I don’t think so, unless you stroll out to the airport rental lot, get on your knees, and buff up that front bumper nice and shiny-like in the blazing sun. Oh, wait. That’s right. No one goes to airports anymore. Road Hazards Aplenty Here’s the thing, and a mighty big thing it is: You risk more buying Hertz stock than driving a 1975 Ford Pinto with 210,000 miles blindfolded at 90 m.p.h. down the interstate. As I’ve opined in my coverage of Carnival (NYSE:CCL) and United Airlines (NYSE:UAL), I’m loathe to invest in anything travel related — unless you plan to hang in there for a good, long time to await a comeback that might never occur. Meanwhile, questions pile up where the rental car lines used to be. When will a Covid-19 vaccine arrive to save the day, if at all? When will we return to our happy, upgrade-me-to-a-full-size-SUV selves, if at all? Or will Hertz give up the ghost and join the likes of the AMC Pacer in the automotive junkyard? No matter on the vaccine thing, as Hertz has lost some pandemic-rattled customers for good. Not even Hertz spokesman-turned-convicted felon O.J. Simpson can get the company out of this mess with one of his swan leaps, not when the company is in a swan dive of nauseating proportions. Steer Clear of Hertz Having witnessed the resurrection of Citi (NYSE:C) from sub-dollar share levels, I will never say never. If 100 shares of Hertz stock will only set you back $86 at the current price, you can consider it a roll of the dice at your favorite riverboat casino and call it good. The question, though, is why? Among so many companies that land in this kind of trouble, the story follows a familiar plot: fraud in the C-suite, products that explode, a massive data breach, industry disruption. But in all those cases, precedent points to a way forward and often a way out. If you can explain to me how Hertz stock can go mano-a-mano with a virus that looks like a demon-possessed jackfruit, please tell me. Because I’d love to buy this bottom, make a killing and wing it to a tropical resort, where there’s a Hertz car waiting for me in the parking lot. Oh, wait. That’s right. No one goes to airports anymore. Nor, perhaps, will they rent from Hertz anymore — not if Hertz isn’t around anymore. On the date of publication, Lou Carlozo did not have (either directly or indirectly) any positions in the securities mentioned in this article. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company Daily Picks: Stocks to Buy Ahead of the Election The post Hertz Stock Too Bruised by Bankruptcy to Buy appeared first on InvestorPlace.
InvestorPlace · 11/06 13:17
Hertz Global Holdings Secures A $4 Billion Commitment For Fleet Financing To Support A Refreshed And Robust Vehicle Fleet
Hertz Global Holdings, Inc. ("Hertz" or "The Company") (OTCPK: HTZGQ) today announced that it has secured commitments for fleet financing totaling $4 billion and has filed a motion for approval of The Hertz Corporation entering into the documentation for the financing by the U.S. Bankruptcy Court for the District of Delaware. Upon approval, and together with the up to $1 billion of Hertz's debtor-in-possession financing that may be used for equity in the fleet financing subsidiary, Hertz will have access to up to $5 billion in total funding to support its fleet financing needs.
PR Newswire · 11/05 21:35
Hertz Shares Suspended From Trade By NYSE Following Bankruptcy Judge Approval Of $1.65B Loan
https://seekingalpha.com/news/3628901-hertz-bankruptcy-judge-approves-1_65-billion-loan
Benzinga · 10/30 11:33
Hertz bankruptcy judge approves $1.65 billion loan
U.S. Bankruptcy Judge Mary Walrath approves Hertz (HTZ) DIP financing of $1.65B, which will allow continuity of the company’s business during Chapter 11 bankruptcy proceedings, reports Reuters.The proceeds of the loan will
Seekingalpha · 10/30 07:40
An Intrinsic Calculation For Herc Holdings Inc. (NYSE:HRI) Suggests It's 28% Undervalued
Does the October share price for Herc Holdings Inc. (NYSE:HRI) reflect what it's really worth? Today, we will estimate...
Simply Wall St. · 10/29 15:48
Analysts Estimate Hertz (HTZ) to Report a Decline in Earnings: What to Look Out for
Hertz (HTZ) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Zacks · 10/26 16:31
Herc Holdings Reports 2020 Third Quarter and Nine Months Results
Herc Holdings Inc. (NYSE: HRI) ("Herc Holdings" or the "Company") today reported financial results for the quarter ended September 30, 2020. Equipment rental revenue was $402.3 million and total revenues were $456.7 million in the third quarter of 2020, compared to $459.6 million and $508.1 million, respectively, for the same period last year. The Company reported net income of $39.9 million, or $1.35 per diluted share, in the third quarter of 2020, compared to $9.4 million, or $0.32 per diluted share, in the same 2019 period. Third quarter 2020 adjusted net income was $39.8 million, or $1.35 per diluted share, compared to $43.2 million, or $1.48 per diluted share, in 2019. See page A-5 for the adjusted net income and adjusted earnings per share calculations.
Business Wire · 10/22 11:30
Netflix, GSX Techedu leads premarket losers' pack
GSX Techedu (GSX) -24%.Armstrong Flooring (AFI) -22% after Q3 earnings.Iterum Therapeutics (ITRM) -18%.China Index Holdings (CIH) -15%.Code Chain New Continent (CCNC) -14%.Dragon Victory International (LYL) -12%.CRISPR Therapeutics (CRSP) -11% after announcing positive top-line
Seekingalpha · 10/21 12:28
LOGI, PE among premarket gainers
Aptinyx (APTX) +98% on reporting positive top-line data from Phase 2 study of NYX-783.Cleveland BioLabs (CBLI) +46% in reaction to its planned merger with biopharmaceutical outfit Cytocom.Recon Technology (RCON) +42%.ATIF Holdings (ATIF) +26% after entering into
Seekingalpha · 10/20 12:24
10 Stocks Moving In Monday's After Hours Session
Gainers EMCORE (NASDAQ: EMKR) shares are trading higher after the company raised Q4 sales guidance above estimates.
Benzinga · 10/19 21:17
Hertz Announces New Chief Accounting Officer
Hertz Global Holdings, Inc., (NYSE: HTZ), a global leader in car rental, today announced that Alexandra (Alex) Brooks has been appointed to Senior Vice President and Chief Accounting Officer, effective November 1, 2020. Ms. Brooks will oversee the company's global accounting operations, financial shared services, tax and risk management.
PR Newswire · 10/19 21:10
Over 1 Billion Hertz Shares Traded On Friday Because Of Bankruptcy Court Filings
Over 1 billion shares of Hertz traded on October 16 and the stock price soared 143%.Details about the $1.65 billion DIP financing were filed October 16.No information about the previously announced October 15 NYSE delisting appeal hearing.A DIP agreement milestone allows for the reorganization plan to be filed as late as August 1, 2021.Financial projections were filed in an 8-K on October 16.
Seekingalpha · 10/19 00:06
Navistar, CIT Group: 5 Top Stock Gainers for Friday
Badger Meter, CIT Group, Navistar, Hertz and PQ Group are some of the top stock gainers for Friday.
TheStreet.com · 10/16 19:22
Mid-Afternoon Market Update: Dow Jumps 270 Points; Hertz Global Shares Spike Higher
Toward the end of trading Friday, the Dow traded up 0.94% to 28,764 while the NASDAQ rose 0.37% to 11,756.61. The S&P also rose, gaining 0.60% to 3,504.26.
Benzinga · 10/16 18:31
NKLA, ADAP, JMIA and HTZ among midday movers
Gainers: Hertz Global (HTZ) +102%.Kaixin Auto (KXIN) +79%.SG Blocks (SGBX) +36%.Summer Infant (SUMR) +32%.CIT Group (CIT) +28%.Forward Industries (FORD) +28%.Oblong (OBLG) +28%.Nano Dimension (NNDM) +23%.Jumia Technologies (JMIA) +21%.Navistar International (NAV) +21%.Losers: Dragon
Seekingalpha · 10/16 16:39
Hertz Doesnt Need Another CEO. It Needs a Miracle
The history of Hertz Global Holdings (NYSE:HTZ) is an interesting one. Currently in the middle of bankruptcy proceedings, HTZ stock is on the verge of dropping below $1 for the first time since June.  Source: Eric Glenn/Shutterstock.com If you want to know how InvestorPlace contributors feel about Hertz stock, one only needs to go to the Hertz page at InvestorPlace’s website. Louis Navellier gives it a failing grade suggesting it’s a strong sell.  Ya think?InvestorPlace - Stock Market News, Stock Advice & Trading Tips In mid-June, I recommended that investors avoid stocks of bankrupt companies such as Hertz and JCPenney (OTCMKTS:JCPNQ).  “I find it hard to believe that Carl Icahn, a billionaire 15 times over, would take a loss of nearly $1.6 billion by selling his Hertz shares for 72 cents each if he felt there was a chance he could get more than that for the stock he owned,” I wrote. But back to Hertz’s history.  A Couple of the Big Three Owned Hertz General Motors (NYSE:GM) was the first of Detroit’s Big Three to own Hertz. It bought the car rental business in 1926 from John Hertz. In 1953, Hertz’s Omnibus Corporation repurchased Hertz.  7 Value Stocks To Buy in an Overvalued Market The next year, it became a public company and remained on the New York Stock Exchange until 1967 when the Radio Corporation of America (RCA) bought Hertz in a stock swap. RCA held on to Hertz until 1985 when it was sold to UAL, the owners of United Airlines (NASDAQ:UAL) and Westin Hotels.   In 1987, Hertz was sold to Ford (NYSE:F) for $1.3 billion. Ford owned 80%, while Hertz management owned the rest. Ford bought the remainder in 1994. In September 2005, Ford agreed to sell Hertz for $15 billion, including debt.  Three private equity firms — Clayton Dubilier & Rice, Carlyle Group (NASDAQ:CG), and Merrill Lynch Global Private Equity — bought the car rental business. Less than a year later, the three firms took Hertz public, selling 88.2 million shares of its stock for $1.43 billion in gross proceeds.  It’s been a public company ever since reaching an all-time high above $100 in August 2014. And that’s where the headline begins to make some sense.  HTZ Stock Was Doomed With So Many CEOs On July 19, 2006, Hertz hired Mark Frissora as CEO of the company. Frissora had been the chief executive for Tenneco (NYSE:TEN). Frissora served until September 2014 when an accounting scandal forced him out of the top job after eight years. Brian McDonald replaced him on an interim basis. McDonald was CEO of Hertz Equipment Rental at the time.  In November 2014, Hertz hired John Tague as CEO. Barely two years later, on Jan. 2, 2017, Tague retired as CEO, and Kathryn Marinello (backed by Icahn) took the helm, the third CEO in less than two years. Finally, Marinello resigned in May after 3.5 years in the top job. Paul Stone replaced her. He joined the company in March 2018 after executive stints at both Walmart (NYSE:WMT) and Cabela’s.  Frissora. McDonald. Tague. Marinello. Stone. That’s five CEOs in less than six years. Is it any wonder that Hertz is undergoing bankruptcy proceedings? By comparison, Target (NYSE:TGT) CEO Brian Cornell was hired (Aug. 12, 2014) around the same time Mark Frissora stepped down, beginning the parade of chief executives. Since Cornell’s become CEO, TGT stock is up 173% compared to 78% over the same period for the S&P 500.  The Bottom Line on Hertz The fact that we [InvestorPlace contributors] continue to write about HTZ stock suggests there’s a level of interest in the car rental company that’s above average. I myself can’t understand the fascination with bankrupt companies and their stocks, but there’s obviously a demand.  The private equity firms that bought Hertz in 2006 assumed a company with $10 billion in debt. By 2013, it had ballooned to $16 billion, and by the time it filed for bankruptcy in May, its total debt had risen to $24.4 billion.   Clearly, the debt didn’t help its cause, but in the end, turning as many CEOs as it did over the course of just six years, HTZ stock has demonstrated why stability in the top ranks is an important part of a company’s ability to have success.  Hertz doesn’t need another CEO. It needs a miracle. One, I doubt, is coming. On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article.  Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace Forget The Election… Pick These Stocks for the Win in 2021 Why Everyone Is Investing in 5G All WRONG America’s #1 Stock Picker Reveals His Next 1,000% Winner Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company The post Hertz Doesn’t Need Another CEO. It Needs a Miracle appeared first on InvestorPlace.
InvestorPlace · 10/16 15:27
Why Hertz Global's Stock Is Up 90%
Hertz Global (NYSE: HTZ) shares are trading higher on Friday after the company announced it secured commitments of $1.65 billion in debtor-in-possession financing.
Benzinga · 10/16 14:26
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About HTZGQ
Hertz Global Holdings, Inc. (Hertz Global) is a holding company. The Company owns Rental Car Intermediate Holdings, LLC, which owns Hertz Corporation (Hertz), Hertz Global's primary operating company. The Hertz Global’s operating segments include U.S. Car Rental (U.S. RAC), International Car Rental (International RAC) and All Other Operations. The U.S. RAC segment is engaged in the rental of vehicles, such as cars, crossovers and light trucks, as well as ancillary products and services, in the United States. The International RAC segment is engaged in rental and leasing of vehicles, such as cars, crossovers and light trucks, as well as ancillary products and services, internationally. The All Other Operations segment includes its Donlen Corporation business, which provides fleet leasing and fleet management services, and other business activities. Hertz Global operates its business through the Hertz, Dollar and Thrifty brands from approximately 12,400 corporate and franchisee locations
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