3 Reasons NOT to Buy Hertz Stock Now
When investors see stock from a well-known company such as Hertz (NYSE: HTZ) plunge, it's tempting to pick up shares at a low price while awaiting a rebound -- after all, buy low and sell high, right?
Hertz, however, finds itself in a bit of an unusual situation, as the company has filed for Chapter 11 bankruptcy protection and is in the process of being delisted from the New York Stock Exchange. Let's try to remove the confusion surrounding the rental company and take a look at three reasons investors should not buy Hertz stock, no matter how tempting the shares appear.
To understand why it's unfavorable to own shares of Hertz in its current form, we first must understand how Hertz got to this point. For a vehicle rental company it's obviously important to have a fresh, maintained, and extensive vehicle fleet. Doing that is an expensive operation.
Source Fool.com