Hertz's Bankruptcy "Stunt" Was Canceled… but It Could Still Catch On

Three weeks ago, Hertz declared bankruptcy due to a COVID-19-driven demand collapse for travel and car rentals and about a $24 billion debt. Now as a trade, there could be some possibilities with HTZ shares if you like risk, but as a “buy” proposition, this is not a stock you want to get close to. Yet over the past few weeks, investors sensing a bargain chased it from $0.56 to a high of $5.53 – more than 887% – despite it being a zombie stock. Sometimes speculators can make money moving in and out of zombie stocks, but it’s very dicey, and someone has to lose out. The New York Stock Exchange served Hertz with a de-listing notice, which the company is appealing, and until something decisive happens, speculators will do what speculators do. But there’s a very unusual idea being floated that’s not only likely to slaughter folks searching for some kind of value that HTZ simply doesn’t have, but that could fundamentally alter the way American businesses enter and exit bankruptcy…

The post Hertz’s Bankruptcy “Stunt” Was Canceled… but It Could Still Catch On appeared first on Money Morning – We Make Investing Profitable.

But there’s a very unusual idea being floated that’s not only likely to slaughter folks searching for some kind of value that HTZ simply doesn’t have, but that could fundamentally alter the way American businesses enter and exit bankruptcy…

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