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Hertz Global Holdings, Inc. Message Board

  • equitycollector equitycollector Nov 5, 2013 11:52 PM Flag

    Insane market

    Yet even with Hertz's chances for recovery from the bankruptcy court looking grim and the company facing impairment losses of $40 million from the incident,

    dropped 10% b/c of 40mil? they are making 200 mil /quarter. These ppl are crazy!

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • If Hertz is forced to write down their residual values by the same amount as their impaired cars at Advantage, the loss in market cap exactly equals that charge

      • 1 Reply to dbtunr
      • You nailed it exactly - that's why the stock dropped, because it is not an isolated problem. Hertz didn't decide to just under depreciate the Advantage fleet. They have been living off low depreciation due to a strong car sale market. When the market turns you have to increase the depreciation accordingly, which means a hit to the bottom line. Hertz is probably sitting on the cars and not selling them to avoid taking losses and fleet aging is increasing, which is a ticking time bomb. Where are the Hertz external auditors ?
        In addition, the SEC / FTC approved the DTG acquisition subject to Hertz divesting themselves of Advantage, so there would be another competitor in the market. If Advantage goes in to bankruptcy, does that mean Hertz has to sell additional assets to placate the SEC / FTC ? Not as simplistic as saying the issue with Advantage is not material.

        Sentiment: Sell

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