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Hertz Global Holdings, Inc. Message Board

  • cmgifool cmgifool Nov 5, 2013 7:09 PM Flag

    Advantage 24,000 vechicle

    HTZ allocated loss of 4 million and an additional 40 millon for the 24,000 Advantage vechicles. About $1,800 per car.
    Stock down 900 million in value. Is that a market overreaction?
    I thought Advantage and its parent company voluntary signed contract with Hertz . Did Hetrtz violate the terms of that contract?
    Hertz enters into contracts with all major car manufactures every year. If they agree to terms that are unfovorable to Hertz then management at Hertz is responsible.
    I think Advantage entered into an unfavorable contract. How Is that Hertz fault?

    Sentiment: Strong Buy

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    • sigh. Advantage was owned by Hertz. The SEC made them spin it out in order to buy DTG. Hertz claimed the cars were worth about $1600 more when they sold those cars to the company that bought Advantage. Hertz says they took a $44M write down, but it could be as high as $50M-$70M. Advantage asked to see how Hertz valued those cars. Hertz refused to provide that answer. So Advantage said #$%$, we go Ch11 and you get nothing (Hertz was getting paid over time but Advantage took possession of cars)

      The issue is if those cars were overvalued, then the entire Hertz fleet of 500K+ cars is overvalued. Hertz CEO refused to answer that question during CC. Karen Finerman called him a liar for not answering. $1600 X 500K+ cars is...wait for it....about $900M in value. Exactly what Hertz lost today. Who says markets are irrational?

      Now if Hertz gets a credit downgrade because the lower book value puts them at risk, then their borrowing costs of their $8B in loans goes up. Every 1% in rate raise is another $80M.

    • Might be some newer cars for sale real cheap soon.

 
HTZ
28.54-0.06(-0.21%)Jul 10 4:00 PMEDT

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