Hertz, The rental car company that is undergoing Chapter 11 bankruptcy proceedings can now sell up to $ 1 billion in stock as it seeks to tap into one of the city’s hottest tickets: short-term speculators with a hunger for speculation . .
Decision on Friday by US bankruptcy court for Delaware district Allows Hartz to sell more than 246.8 million shares to Jefferies LLC. Hertz, which made an emergency request on Thursday, has not entered into an agreement with Jefferies, the company noted in a regulatory filing.
Yes that’s right The company, which is fighting to be removed from the New York Stock Exchange, may sell the stock which may soon be completely wiped out. And it appears that a lot of retail investors are ready and ready to jump into the scheme.
Hertz shares closed Friday at $ 2.83, a 37.38% increase from the previous day’s close. The company has seen its share price rise by more than 400% since reaching a historic closing level of $ 0.56 on May 26.
Last month, Hertz filed for Chapter 11 bankruptcy protection. The filing was hardly a surprise. The rental company COVID-19 is crushed by the epidemic. Once business trips and other trips were halted, Hertz suddenly sat on an unused property – lots and lots of cars. It was not just that the revenue gap was eliminated. Used car prices also fell freely, which further devalued the fleet.
The company said in its May filing that it had more than $ 1 billion in cash on hand, which it said it would use to keep the business running through the bankruptcy process. Since then, another compelling source of capital has emerged. Robin Hood Merchant, we are watching you
This week, Hertz was number 2 on RobinTrack’s popularity chart, a website that tracks Robinhood’s data. The chart tracks the number of Robinhood users holding a particular stock over a 1-day, 3-day, 1-week, and 1-month period. This week, the most popular stock in terms of growth in traders, Nicola Motor, was a company that skyrocketed its share price despite forecasts that it would not generate a drop of revenue until at least 2021.
To fully immerse yourself in this broader trend, let us go to TipsClear See Time Machine – Blop BOP Blip – and February 21, 2020. Hertz shares closed at $ 20.29, the highest closing price since January 2018. At the time, approximately 1,064 Robinhood users held Hertz stock.
As the COVID-19 epidemic sent the economy into a tailspin, Hertz stock declined more than 83% between February 21 and March 18. It briefly rose and then continued until May 26 until the stock closed at 0.56 (which is down from 97.24.% From the closing high in February). Meanwhile, over Robinhood, Hertz’s problems began to appear like a buying opportunity. Robinhood traders started investing in Hertz as soon as the stock price fell. As of March 18, more than 3,500 Robinhood users held Hertz stock. A month later, the number exceeded 18,000 and then crossed 43,000 users by 21 May.
Hertz filed for Chapter 11 bankruptcy May 22. And when it got walnuts. As of Friday, 170,046 Robinhood users held Hertz stock.
To be clear, Robinhood is one of several devices that use retail equipment. What is popular on Robinhood may not reflect widespread investor sentiment. However, it provides a snapshot in which young and new investors are interested.