Hertz Global Holdings Inc (HTZ)

[LouisDesyjr]

Wonder about reorg value

It looks like most of the reorg value for the existing common shares is the new warrants, like on the order of $5 per share. I think the warrants have a term of something unusual long, like 30 years and do wonder if the typical methods of valuing warrants really should be used.

The expectation is the longer the term the better chance a company has reaching the exercise price, but I would expect if a company is not showing promise within 5 or 10 years it probably is never going to get there; so giving that extra time value in assessing the present value of the warrants might have people assigning too high a value to them.

Louis J. Desy Jr.