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Is it time to rock and roll??
It’s all possible imo
Surging Earnings Estimates Signal Good News for Hertz (HTZZ)
Zacks Equity Research Zacks
PUBLISHED
SEP 29, 2021 9:16AM EDT
Hertz Global Holdings, Inc. HTZZ is a leading equipment rental supplier that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.
These positive earnings estimate revisions suggest that analysts are becoming more optimistic on HTZZ earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Hertz could be a solid choice for investors.
Current Quarter Estimates for HTZZ
In the past 30 days, one estimate has gone higher for Hertz while none has gone lower in the same time period. The trend has been pretty favorable too, with estimates moving from 39 cents per share 30 days ago, to $1.01 per share today, a move of 158.9%.
Current Year Estimates for HTZZ
Meanwhile, Hertz ’s current year figures are also looking quite promising, with one estimate moving higher in the past one month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, moving from $1.02 per share 30 days ago to $3.72 per share today, a move of 264.7%.
Bottom Line
The stock has also started to move higher lately, adding 15.4% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So, investors may want to consider this Zacks Rank #1 (Strong Buy) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank stocks here.
https://www.nasdaq.com/articles/surging-earnings-estimates-signal-good-news-for-hertz-htzz-2021-09-29
Just a guess here but this run up is about 5-6 weeks out from 3rd quarter earnings report.
Coincidentally it takes about 5-6 weeks to list on NASDAQ once papers are filed.
It's possible Hertz filed to list around now....and someone got wind of it and started buying.
It's impossible to keep that kind of stuff totally secret.
Who knows ??? Something is making this go north...
Maybe something good will happen now to November
Sept 30.....but those earnings aren't released until about first or second week of November
When is 3rd quarter over thanks
Starting to move some! Good sign on low volume imo
I am loaded but going to buy more when time is right
It's the first research firm news I have seen since emerging from BK.
And the fact it is a strong buy is such a huge positive.
Other research firms will probably start giving opinions like this also.
This is great news
HTZZ - Zacks Rank #1 (Strong Buy)
Gets better and better
GM is working with Hertz to get more borrowed cars amid chip shortage
September 20, 2021 by admindigi
General Motors has signed an agreement with car rental giant Hertz to help turn more borrowed vehicles into dealerships amid a global shortage of microchips.
As an enhancement to GM’s existing dealer courtesy transportation program, Hertz will make loaned vehicles available to dealers at the automaker’s current price, a GM spokesperson confirmed to Car News. Hertz’s primary focus is providing Chevrolet Bolt customers with lenders during the redemption process.
AutoForecast Solutions estimates that the global industry has lost 8.36 million vehicles from planned production due to a lack of chips. About 2.7 million of these vehicles were cut from production plans in North America.
General Motors this month doubled its production loss forecast to 200,000 vehicles in the second half of the year. The automaker continues to pause production at its assembly plants, especially those that build crossovers and sedans, to redirect the chips elsewhere, and has built some vehicles without certain units.
Hertz has locations in all 50 states, and Washington, D.C. rental car companies, like dealerships, have struggled to get stock during the chip crisis. But direct access and GM’s price through Hertz will give merchants another channel to secure lenders. A GM spokesperson said the Hertz loaned vehicles depend on local market availability
https://digichat.info/gm-is-working-with-hertz-to-get-more-borrowed-cars-amid-chip-shortage/
How Car Rentals Explains the Economy of 2021
Few markets better crystallize the hardest-hit nature of the US economy during the pandemic than the rental car business.
The industry shows how economic decisions made in 2020 have serious implications in 2021. While most other industries have experienced less severe volatility, the same basic dynamics apply. These dynamics explain why inflation and product shortages rose in the first year – and why they are. Have begun to decrease but are not yet close to preendemic norms.
In the spring and summer of 2020, the industry was in a state of collapse as people stopped traveling. With a glut of cars – a much greater supply of rentals than demand – prices plummeted; Major rental car companies sold hundreds of thousands of vehicles; And Hertz went bankrupt.
Car or truck rental prices were 23 percent lower in May 2020 than before the pandemic began.
Fast-forward a year, and millions of vaccine jabs later, and Americans were ready to travel again – but the rental car industry was stuck with its diminishing fleet. And it faced challenges filling those fleets quickly, as automakers themselves were facing supply constraints due to a production rollback in 2020.
In the second quarter of this year, for example, the combined fleet of Hertz and Avis, the two major rental car companies reporting public data, was 312,000 cars smaller than in the second quarter of 2019 — a 30 percent drop. . (Enterprise Holdings is larger than any, but is privately held).
“In the spring of 2020, no one really knew what to expect,” said Neil Abrams, president of Abrams Consulting Group and a former Hertz executive. “In my 45 years in this industry, no one had ever seen anything like this. I’ve seen cycles, recessions, peaks and valleys, but nothing like it. The people who had to make big strategic decisions really had no precedent. “
But eventually, “demand came back much quicker than I think anyone had anticipated, especially on the holiday side,” he said.
With demand increasing and the supply of cars still declining, rental car companies increased prices. According to transportation app Hopper, on June 19 of this year, the average rental car price excluding taxes and fees was $123 per day, down from $50 at the start of the year.
But higher prices have a strange way of fixing themselves, at least to some extent. Those considering renting will mess with different modes of transportation if the rental car becomes too expensive. Some people may decide to customize their itinerary by using Uber or a mix of public transportation. Others may turn to alternatives like Turo or U-Haul for the car.
This is even more true for leisure travelers, who tend to be more price-sensitive than business travelers.
“If people can’t afford it, they’ll adopt it,” said Annie Malkani, head of ground transport at Hopper. “Money is not infinite; You have to make decisions based on the money you have.
The value that consumers calculate for their holidays may be the release valve for pressure.
Meanwhile, some planned travel, especially business travel, could dampen demand with the arrival of the Delta version. And the end of the busy summer travel season, and the gradual rebuilding of the rental car fleet, have brought the market closer to its normal equilibrium—though only somewhat closer.
“We’re coming down from an altitude of 13,000 feet to an altitude of 10,000 feet — it’s still a very expensive time to rent a car,” said Hopper’s Mr. Malkani.
The drop in prices varies greatly across the country. Summer travel cities such as San Diego, Miami, and Tampa, Fla., have seen the most significant declines. At the end of June, the average rental price in those cities was over $100 a day. Now they can be had for as little as $50. Cities like New York, Los Angeles and San Francisco have seen prices drop by about a third.
On the supply side, automakers are struggling to ramp up production due to microchip shortages. Eventually rental companies compete with ordinary drivers for a limited supply of new cars, and new cars are rare.
Mr. Abrams, a rental car industry consultant, expects that some of the changes in the industry – including higher prices – will be permanent. Companies are finding new balance with higher prices and smaller fleets to turn profits. And the experience of the pandemic will make companies more vulnerable to bankruptcies like the one Hertz experienced. (Hertz found buyers and emerged from bankruptcy in the early summer.)
“When an industry goes through a trauma like this, it becomes smarter and more efficient than it was before the trauma,” Mr. Abrams said. “The industry has learned how to do business in a different way, and I think customers are going to get used to the paradigm shift in how cars are rented and priced.”
The story of rental car prices, though unique in its own way, is a vivid example of dynamics that apply to many other goods. The 2021 shortfall was in large part due to a combination of supply decisions made more than a year ago that cannot be undone, and demand conditions that returned to normal with some expected momentum.
Markets are quite effective in doing their job of finding equilibrium. When prices go as high as car rentals in June, it destroys demand. People will figure out another plan. But just because prices softened doesn’t mean they have to go back to their pre-pandemic levels, and some of the changes that have taken place could be surprisingly long-lasting.
https://www.nytimes.com/2021/09/20/upshot/car-rental-prices-economy.html
Anything new going on? Just a waiting game till end of the year
If anyone hears we need to load the wagon up …. Let me know thanks
https://www.wsj.com/articles/hertz-searches-for-a-new-ceo-after-bankruptcy-11631369863
Hertz Global Holdings Inc. is in talks to name a new chief executive officer, as the car-rental company resets after emerging from bankruptcy under new ownership, people familiar with the matter said.
CEO Paul Stone has had the top job at Hertz since May 2020, taking the position days before the company filed for bankruptcy protection. Hertz exited chapter 11 earlier this year and is now controlled by an investor group led by Certares Management LLC and Knighthead Capital Management LLC.
Hertz is talking to several potential CEO candidates and a decision hasn’t been finalized, the people said. It is unclear when a leadership change may be announced. Hertz didn’t respond to requests for comment.
Hertz exited bankruptcy on June 30 and said in August it planned to bring its shares back to a major stock exchange by the end of this year. It is planning a roadshow to woo institutional investors as part of the relaunch.
Several qualified candidates have expressed interest in the CEO job, and Hertz would like to have the decision made before the stock is relisted on a major exchange, one of the people said.
Hertz’s new owners are seeking to drive a transformation of the business, implementing new software to accurately forecast customer demand and optimize inventory management, and also to transition the fleet to include more electric vehicles. They are searching for a leader with the experience and expertise to lead such a transformation, one of the people said.
Mr. Stone, who has led the company’s roughly 24,000 employees during the pandemic, previously was its chief retail operations officer in North America for two years. Before joining Hertz, he was chief retail officer at outdoor products merchant Cabela’s.
The car-rental business has snapped back from the start of the pandemic. Many travelers have found it challenging to book rental cars on their post-pandemic trips, while others have turned to renting cars from private individuals or biking around during vacations. At leisure destinations, rental offices have been swarmed by travelers eager for a vehicle.
Hertz was one of the highest-profile corporate defaults stemming from the coronavirus pandemic when it filed for bankruptcy. As would-be drivers stayed home in spring 2020, Hertz staggered under $19 billion of debt, much of it tied to its fleet. The company had been losing money for several years before the crisis and facing competition from ride-hailing services such as Uber Technologies Inc.
Executives from Certares, Knighthead and Apollo Global Management Inc., which also backed the company’s exit from chapter 11, occupy five of the nine seats on the Hertz board. Certares founder Gregory O’Hara serves as Hertz’s chairman.
Hertz stock closed Friday at $15.91 in over-the-counter trading, with a market capitalization of more than $7.4 billion. The Hertz bankruptcy was a rarity in that it returned roughly $8 a share to its stockholders. Typically in business bankruptcies, equity owners walk away empty-handed.
Certares and Knighthead formed an investment vehicle last year to back travel and leisure businesses such as Hertz. Certares also has a controlling investment in travel-management firm American Express Global Business Travel, which earlier this year struck a deal with Hertz.
Mr. Stone said last month that Hertz was collaborating with its new investor group and its “extensive travel industry network,” including Amex GBT and Tripadvisor Plus. He also said Hertz was strengthening its relationships with Uber and Lyft Inc., and was planning to add more electric vehicles into its fleet.
Hertz could be the best come back in the end of year IMO !! Buying more! Up 7,000 shares now.
HTZZ wants to move up! Maybe we here from company soon!
Still buying and holding!!
A Deep Value Opportunity Away From The Herd: Hertz Global Warrants https://seekingalpha.com/article/4453036-a-deep-value-opportunity-away-from-the-herd-hertz-global-warrants
Sep. 01, 2021 1:26 PM ET Hertz Global Holdings, Inc. (HTZZ), HTZZW
Summary
-Hertz Global Holdings is a newly re-structured company post-bankruptcy.
-Hertz has removed $5 billion in debt and streamlined operations.
The company's Q2 2021 results were above expectation.
-Hertz warrant options trade at a significant discount to NAV and provide 22% margin of safety.
-This idea was discussed in more depth with members of my private investing community, Away From The Herd
Editor's note: This article was amended on 9/1/2021 to reflect a quantitative correction in the 'Warrants' section.
By, David Huston and Nick Gomez
Value investors would be forgiven for thinking that there is no point in investing, or finding, deep value plays in today’s market. Just holding the S&P 500 index – with its huge weighting to large cap growth – has returned 18.4% in 2020 and 22% YTD. That being said: if you know where to look, there is value in this market. One such opportunity arises from a mispricing inherent to Hertz Global Holdings 30-year warrants.
Hertz Global Holdings
Hertz Global Holdings (OTCPK:HTZZ) is the parent company of Hertz, Dollar and Thrifty vehicle rental brands that operate worldwide. It is one of the most recognizable brands globally and the business suffered through the COVID-19 induced lockdowns last year.
This resulted in the century-old Hertz rental company entering into bankruptcy proceedings and re-structuring its debt. Hertz sold off nearly 180,000 vehicles and ended up in the hands of two investment firms - Knighthead Capital Management LLC and Certares Opportunities LLC, with shares also traded publicly on the OTC market.
This sounds bad, but let’s look at the numbers. Hertz had a fantastic re-structure. According to Judge Mary Walrath the outcome from the bankruptcy was a "fantastic result" that "surpasses any result that I've seen in any Chapter 11 case that I've faced in my 20-plus years”. Executives managed to eliminate $5 billion worth of debt, gain a $2.8 billion credit facility and a $7 billion asset-backed financing capability. They sold their Donlen fleet leasing business for $891 million and tightened up operational efficiency. The money that they generated from selling the 180k vehicles was more than management expected and that capital goes straight back into the business.
Performance & Ownership Structure
The business has a total of 471 million shares and most of these shares are owned by the investment firms who have a significant stake in the business, and inside owners. That leaves a float of $275 million shares which are 41.7% held by institutions.
The shares have had a torrid time in 2021 so far. Hertz opened this year at $22 and was mooted by Barron’s to be in pole position to move forward from here, back in July 2021. Since then, shares have meandered as low as $15 and currently trade at $16.80. Barrons has stuck with their thesis and continues to re-iterate that the warrants for Hertz Global are excellent value. Let’s get into why that is now the case; it is fair to say that, after the tip, hedge funds and banks have probably had their fill betting against Hertz.
In terms of Hertz operational and business performance, they had a fantastic Q2 that doesn’t appear to be fully priced into the stock. Revenue was up 62% to $1.9bn, and they had a net loss of $168mn which included $633mn in reorganization expenses. Liquidity rose to $3bn from $1.1bn at quarter end.
What’s more, the company took a gamble – selling their average vehicle base from 517,973 vehicles down to 350,122. The improvement in their finances is partially due to realizing very high selling prices for their fleet of used cars, as they benefited from a buoyant used car market. Now that Hertz Global has 78% vehicle utilization, they can re-build their fleet and start to buy-back vehicles that go straight into service.
Their core KPI of total revenue per transaction day (representing vehicle pricing in the market) rose 53% in the Americas and 32% in international markets. They are within earshot of their 2019 performance levels and according to the CEO on the Q2 call demand remains strong.
Warrants
The CEO added one more cherry to the pie when he announced that he would like to “re-IPO” the business and bring the shares back to established markets on the US exchanges (NYSE or Nasdaq). Given that he has stated this is a core focus for the upcoming year, expect to hear more news about the plans and a potential flotation in 2022.
This brings us to the investment opportunity. Hertz Global shares currently trade at $16.80 and have shown some upward momentum since they bottomed at $15.
We see a floor under prices at $15 and signs of upward momentum since 19th August as it looks to challenge the $18.75 level last seen in July.
Hertz Global has 30-year warrants that trade under the ticker symbol HTZZW. They are fully convertible (1:1) into stock and there’s a formula for their exercise price in the prospectus that accompanied the re-structure of the business.
The exercise price is equal to a fixed market cap estimate of 6,500,000,000 divided by the number of outstanding shares – currently 472,000,000. That gives you an exercise price of $13.77, even though the common stock trades at $16.80. This is like paying $8 for a 30-year call option that is $3 in-the-money, which allows you to follow the business and wait for the two catalysts to unfold--continued operational performance, and a re-IPO in the near future.
Valuation
We uncovered this opportunity last month at below $7 but we continue to think that there is significant upside ahead.
Consider this: HTZZ currently trades for 1.4x sales and 2x book with a PE of 16.8. Compare this to AVIS – one of their major competitors – which trades on 35x earnings and a price/book of 69x and price/sales of 1. Avis has $17.2bn in debt against $10bn for Hertz even though they have similar market caps.
The potential for having stable insider-owned shares sold into the market through a re-IPO, and the positive momentum that they have made in the business, make Hertz shares a buy and their warrants a significantly undervalued opportunity for market participants.
Wish for a update on listing up soon!!!!
About time to move North hopefully
Lets keep it going !!!!!
Thanks for sharing! I am holding till end of year
Hertz Stock Looks Appealing. The Warrants Might Be Even Better.
By Andrew Bary
Updated Aug. 27, 2021 8:47 pm ET / Original Aug. 27, 2021 8:43 pm ET
The rental-car company, valued at $7.5 billion, is coming off a successful second quarter, and the current quarter could be even better.
Hertz Global Holdings (ticker: HTZZ) emerged from bankruptcy on June 30. The shares in the reorganized company, now trading around $16, look appealing. But the better bet is the company’s warrants (HTZZW), trading at $7. The 30-year warrants, a call option with an exercise price of $13.80, are statistically supercheap.
The rental-car company, valued at $7.5 billion, is coming off a successful second quarter, and the current quarter could be even better thanks to strong pricing that reflects robust demand and scarce vehicles.
Hertz has a great balance sheet, with net cash of $300 million, excluding asset-backed debt secured by its fleet. The U.S. rental-car business is an oligopoly with three dominant players: Hertz, Avis Budget Group (CAR), and the private Enterprise. That bodes well for pricing even after the companies build up their vehicle fleets next year.
Hertz has a low valuation based on its earnings before interest, taxes, depreciation, and amortization, or Ebitda. The company could be in position to return cash to shareholders by 2022.
Hertz has little in the way of analyst coverage, but its profile should rise by year end. The stock’s listing is expected to move from the Pink Sheets to either the New York Stock Exchange or Nasdaq by then, and the company plans to do what it calls a “re-IPO,” which could involve the sale of stock by institutional holders who got shares in the bankruptcy reorganization as well as newly listed shares.
Write to Andrew Bary at andrew.bary@barrons.com
Maybe we get some news soon of a up list ?? Would hope that’s on the company mind
It took a couple months almost but HTZZ and HTZZW have finally started trading in the correct delta correlation.
That is a good sign.
Imo be on the Nasdaq by end of year
$HTZZW: Warrants Expire in 2051 ??????????
WOW !!!!!!!!!!!!!!!!!!!!
Thats impressive.
Now at $6.35
https://www.otcmarkets.com/stock/HTZZW/overview
3.3Milly warrants short.
Will position in here when it gets down to $1
GO HTZZW !!!!!!!!!
Dang! Going to be a long wait here! Maybe go up one day
Hey thanks for that post. Got any other good stocks you look at? I am only here for a short pop! Was hopeful of $20 to $22 DONT know
The “re-IPO” will just be an offering of existing shares held by the hedge funds that won the bankruptcy bid.
In a real IPO, the company creates a big block of shares worth X% of the total company, then sells that big block to the underwriters (think Goldman Sachs).
The underwriters then go around and sell off the shares to big funds that want them in sort of an auction.
Based on that auction process, an initial share price is set, and the stock starts trading.
The only shares are the ones owned by the big funds, and the public wants them, so usually the price pops on IPO day and the big funds all make a big profit.
Sometimes existing management also includes some of their shares in the IPO block given to the underwriters, but it’s the same process.
In this case, the company isn’t issuing any shares. They are all already held.
3% of the total shares are currently trading on the OTC market.
The rest are locked up, and can only be traded privately between big firms.
Once they list on an exchange, the other 97% will become publicly available.
The big firms that own them can sell them to the public, just like how a normal IPO works.
It’s like a normal IPO, but instead of company issuing new shares, the shares are already held by the hedge funds that won the bid, and they will be selling some.
What that does to the price in the short term… who knows. Probably a lot of volatility. I’m guessing the public shares are a bit overvalued right now because only 3% are trading and the public buyers are mostly retail (pension funds don’t trade on the OTC markets), and retail investors are the least well informed players in the market. That would explain why the warrants are so cheap relative to the shares right now. But a listing also means a lot more demand, because a lot of big money that can’t buy on OTC will be able to buy again, so it could send the price up too. It’s not so much about how many shares are available, because the shares already exist, but they are in lockup. It’s not dilution in the real sense.
Disclaimer...from a recent Reddit post.
All we need is to be up listed IMO
Hertz Global Holdings Reports Strong Second Quarter 2021 Financial Results
- Total revenues of $1.9 billion up 62% from first quarter 2021, excluding Donlen revenues
- Net loss of $168 million including $633 million of reorganization expenses
- Adjusted Corporate EBITDA of $639 million for the quarter was a Company record
- Corporate liquidity of $3.0 billion at June 30, 2021, including $1.8 billion of unrestricted cash, compared to $1.1 billion at first quarter-end
- Hertz Global emerged from its Chapter 11 process on June 30, 2021 as a well-capitalized company with the flexibility and resources to pursue exciting new growth opportunities. The Company anticipates a re-IPO, which includes hosting an investor roadshow andrelisting on a major exchange by year-end.
https://www.prnewswire.com/news-releases/hertz-global-holdings-reports-strong-second-quarter-2021-financial-results-301351024.html
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