June 08, 2020 - 2:11pm EST by
2020 2021
Price: 5.51 EPS 0 0
Shares Out. (in M): 142 P/E 0 0
Market Cap (in $M): 782 P/FCF 0 0
Net Debt (in $M): 0 EBIT 0 0
TEV (in $M): 0 TEV/EBIT 0 0
Borrow Cost: Hard to Impossible 50%+ cost

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I am selling calls at insane Vol on HTZ. The damn thing is in BK, not maybe, but already for a while. The only argument is that for some reason the equity will come out whole? As of latest Q there was $25.8 billion in assets and $1.49 billion in equity. Include in that a few hundred million already spent on Chapter 11 costs and Covid shut down expenses and there is no equity left. (Yeah I am always blown away what the cost of Chapter 11 filings are.) I cannot get a borrow for HTZ stock and it is my guess there were a lot of people shorting HTZ assuming the equity would be an easy zero and then they ran into a short covering rally mixed in with Robin Hood millenials. Sorry for the short write-up. Not sure what more there is to add.

Also, CFO just sold shares around $1. Directors sold too. I guess they too don't think the equity will survive.

I do not hold a position with the issuer such as employment, directorship, or consultancy.
I and/or others I advise hold a material investment in the issuer's securities.


Short covering rally ending and implied vol collapsing.

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