Auto Rental Companies - AVI, BD, HRZ, DTG, AN Message Board

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Non-Tech : Auto Rental Companies - AVI, BD, HRZ, DTG, AN

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From: Paul Senior	8/30/2014 9:15:31 PM
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From today's Barron's Activist Spotlight: ...Hertz is a growth company that is part of an oligopoly with serious barriers to entry, such as real estate at airports, which is no longer readily available. However, the company has had recent operational issues (car recalls in 2014) and accounting issues resulting in late SEC filings. As a result, there is a large valuation gap between Hertz and its closest competitor, Avis. Many shareholders, most notably Fir Tree Partners, have lost confidence in management. Fir Tree recently called for the replacement of the CEO. (See Barron's Follow-up on Hertz). Icahn is not one to follow the lead of other shareholders, but will have his own discussions with management and make his own decisions. Hertz is on the right track, with the recent decision to spin off its rental equipment business. Icahn's presence may be enough to reinvigorate management's focus. But if disagreements between shareholders and management develop into a proxy fight, the large concentration of hedge funds in the shareholder base is a positive factor for activists. -- Kenneth Squire Awaiting further developments, I continue to hold my HTZ shares.

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