Why wouldn't a portion of the debt be allocated to the new Hertz Equipment Rental HERC? You don't make any sense.
Lets review what HTZ has already done:
-HTZ has already raised prices to match competitors - this will have a very positive impact on profit margins.
-It has begun / has plans to cut $100mm a year in op expenses.
-Has the most shareholder friendly board (and mgt) its ever had.
-New CEO bought $2mm in stock with his own money at prices ABOVE where it trades today.
-Is undervalued vs its peers.
-Is ready to spin HERC soon (which will be allocated a portion of the debt.
-HTZ should be able to raise at least $3B in cash with HERC spin, which given Tague was handpicked by Icahn (who loves companies that buyback shares) we can assume that the board and Tague will aggressively buyback stock.
- We have an estimate for timing now on the financials - June.
-Some of the absolute best investors are long the stock, including : Icahn, Jana, Glenview, Fir Tree, Tiger, etc, etc.- Many of which have increased their position aggressively based on most recent filings.
- I think Id rather put my on them and their analysis given their history of finding great investments.
Depends on your definition of "near future". Mgt has already stated publicly its plans to spin it. If they get the Financials out in June (as Rosenstein said) timing for a divestiture of Hertz equipment should be relatively soon after. Exact timing unknown, but certainly this year. Possibly this summer? Either way, it will give them a significant cash flow infusion and that is precisely what Barry is referring to when he says they will have the wherewithal to buyback ~20% of the shares.
Every analyst I've seen said a spin-off of Hertz equipment rental would fetch between $3B - $4B for HTZ. That should be plenty of money to facilitate a large buyback.
That well respected HF/investor has taken a position and will be filing their 13F today or Monday? I think some traders / investors see this as a potential catalyst that smart, long term money is coming into the stock.
Personally I'd like to see it break the 1/13 high before giving it lofty targets. But the technical picture looks good!