How Hertz Became the Perfect Contrarian Short in 2014

Head over to SumZero to hear the recap of the 2014 published short pitch of Hertz (HTZ) by Tom Fogarty.

"When I first started shorting Hertz, the consensus narrative was very persuasive—consolidation would lead to more pricing power, operational changes would improve profitability, and the spinoff of HERC [Hertz Equipment Rental Corp.] offered potential financial engineering and value-creating divestiture possibilities. I’d researched and passed on Hertz several times over the years, never quite sure whether it was actually profitable in an economic return sense. But I like a good consolidation story as much as the next guy, and the industry had consolidated from nine to four firms since I’d last analyzed it, so I thought it was worth a look as a long."

How Hertz Became the Perfect Contrarian Short in 2014

 

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