Is Buying Hertz Stock Right Now Just Crazy Talk?
Tough times create big problems for many companies, and inevitably, there are casualties when unexpected financial turmoil hits. With the COVID-19 pandemic, Hertz Global Holdings (NYSE: HTZ) proved vulnerable to unprecedented health and safety measures that brought the travel industry to a standstill. With hundreds of thousands of vehicles sitting idle, Hertz burned through cash at a scary rate and eventually sought bankruptcy protection to fend off its creditors.
Usually, shares of companies move close to zero fairly quickly after declaring bankruptcy. Hertz has been the exception, with some optimistic investors placing big bets on the rental car company despite its ongoing woes. Stock markets are supposed to be efficient, so I decided to take a look at the most bullish case for Hertz to see if any of the recent buying in its shares makes sense. Here's what I found.
Image source: Hertz.
Source Fool.com
