CAR, HTZ

Consumer


Presented:11/20/2014
Price:$59.40
Cap:$6.31B
Current Price:no data
Cap:no data

Presented

Date11/20/2014
Price$59.40
Market Cap$6.31B
Ent Value$18.44B
P/E Ratio35.39x
Book ValueN/A
Div YieldN/A
Shares O/S0.00M
Ave Daily Vol2,370,000
Short Int10.02%

Current

Priceno data
Market Capno data

Publicly traded companies mentioned herein: Avis Budget Group Inc (CAR), Hertz Global Holdings Inc (HTZ)

Highlights

Shares of Hertz Global Holdings (HTZ) have been “obliterated” over the past three months (down 25%), and Avis’ (CAR) shares haven’t fared much better (down 13%). Year-to-date performance for Hertz is only slightly better at -20%, but Avis’ shares have performed well (up nearly 50%) in the face of fears about pricing power and residual vehicle value. The presenter is long both CAR and HTZ, and believes industry consolidation has finally reached a point where pricing can improve. In fact, he argues that pricing has “obviously,” finally started to improve now that all the “bad actors” - rental car companies that were the most aggressive on pricing - have been rolled up and activists are pressuring Hertz to improve its discipline.

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Idea Discussion

Commentor 1 - 2 weeks ago

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