Hertz (NYSE:HTZ) is about to release earnings. Hertz has a huge upwards price spike which will certainly attract regulatory attention. So whoever you are just go straight to your lawyer’s office. You need some advice.
In the meantime Hertz as a car rental company expanding into other aspects of the rental business has several Bear Case Scenarios to ponder.
The capital cost of cars is dynamic and the fleet needs to be turned over rapidly. Hertz relies on used car prices to hold up and they need the used car market to have enough depth to absorb the rotation.
While other rentals look like car rentals their markets have different dynamics and hertz needs to learn how to run in new businesses. Integration costs are always a factor.
Rumour mill has it that’s it’s an equipment spin-off. But you never know for sure until the fat lady sings.
George Gutowski writes from a caveat emptor perspective.