From "Bye Bye Bye" to "BUY BUY BUY"

"Wobbles the Mind" (wobblesthemind)
06/08/2020 at 19:22 • Filed to: Stonks Only Go Up

Someone out there decided to convert the loose change out of their car into a share of Hertz right after they filed for bankrupt cy. While no one in their right mind would recommend that, those people didn’t count on everyone else losing their minds just a week later!

L et’s say that you had $1,2 0 0 saved up to buy a beater car but instead decided to buy a tiny portion of a beaten rental car company instead . Well, your $1,2 00 worth of shares in Hertz would now have people excited to pay you nearly $14,000 for your total stake in the company’s theoretical future profits. *Whistle*

DISCUSSION (20)

jminer > Wobbles the Mind
06/08/2020 at 19:30

This doesn’t make sense to me as they’ve entered bankruptcy which even though they plan to reorganize and reopen makes their shares essentially worthless (I think).

T he stock market is absolutely insane now - my portfolio has regained everything it lost and my 401k is almost there too. There are still over 15 million people unemployed and massive levels of uncertainly in everyday life.

TorqueToYield > Wobbles the Mind
06/08/2020 at 19:34

I see you Hertz, a few billion dollar company at best, and raise you Boeing, a few hundred billion dollar company up 144% in a few months .

Kinja'd!!!

95 to 230 or so.

BA stock was at like 375 before all this, so theres that.

Grindintosecond > Wobbles the Mind
06/08/2020 at 19:37

Its the debtor in posession percentage. IF you got the stacks, then you can take X percent of actual posession of all assets of the company if you have that percentage. Sort of like a hostile takeover method, its just positioning for when the bank hired to reorganize sits down to figure out who owns what.

facw > Wobbles the Mind
06/08/2020 at 19:39

That’s nuts. Surely the shareholders are going to take a bath in bankruptcy. Even if they don’t get completely wiped out, they are going to get displaced by stock grants to creditors.

And even with the stock market surging, it seems likely that vacation rentals will still be way down over the summer (people are eager to return to normal, but it seems like they are still quite scared of flying, so many more than usual will be driving their own cars to vacation), and businesses have no appetite for travel, and don’t show any sign of even thinking about it this year (and quite possibly will say why were we even paying for this travel when people can meet online). Maybe demand will return quickly enough to help some rental companies, but Hertz seems pretty fucked now.

ranwhenparked > jminer
06/08/2020 at 19:44

There’s a very high chance their stock will either be cancelled or heavily diluted, with creditors swapping debt for equity. I’m stunned it didn’t fall below the threshold for delisting, I’d have expected them to be in the Pink Sheets by now.

Gone > Wobbles the Mind
06/08/2020 at 19:46

Chesapeake enters the chat. A story in two screenshots.

Kinja'd!!!

I doubled my money last week in the market, may play with house money this week . JPow is helping stonks go up always. Never will stay in this market for more than a day (except retirement stuff). Market is off the rails crazy but hey almost free money. Do not recommend actually investing right now. It’s dumb.

someassemblyrequired > Wobbles the Mind
06/08/2020 at 19:47

Long-dated HTZ debt is still trading at 20c/dollar. This is someone playing retail (read Robinhood) investors. Hertz CFO sold all his shares for $1/each a few days ago . Read into that what you will.

CHK was doing the same crazy runup today, and filed for bankruptcy after market close.

I’d like to short the you know what out of both, but apparently we live in bizarro world and bankruptcy is the key to unlocking shareholder value .

Nom De Plume > Wobbles the Mind
06/08/2020 at 19:51

your $1,200 worth of shares in Hertz would now have people excited to pay you nearly $14,000 for your total stake in the company’s theoretical future profits. *Whistle*

Hertz, don’t it?

Gone > someassemblyrequired
06/08/2020 at 19:58

If you short anything these days you’ll automatically get your face ripped off. This is the dumbest timeline.

fintail > Wobbles the Mind
06/08/2020 at 20:18

Meanwhile, how is average income/wage/wealth growth going?

lol

jminer > ranwhenparked
06/08/2020 at 20:31

Same, this article genuinely surprised me that they're still trading.

Snuze: Needs another Swede > Grindintosecond
06/08/2020 at 20:51

Ask me about the time I almost accidentally bought a Greek dry goods transport company and almost ended up with 3 non-running, r usted out hulk Panamax ships.

Nick Has an Exocet > Wobbles the Mind
06/08/2020 at 20:57

This is basically machines and traders playing a game with what is going to be a 0 stock in a month.

WilliamsSW > Wobbles the Mind
06/08/2020 at 21:07

Short covers? Although I would think they covered a week or two ago.

BrianGriffin thinks “reliable” is just a state of mind > Wobbles the Mind
06/08/2020 at 21:10

If only us normal mortals knew what was a safe bet and what was stupidly risky

facw > TorqueToYield
06/08/2020 at 21:46

My brother bought Boeing in March so he’s pretty happy about that. Possibly I should have followed him, they are definitely in too big to fail territory, the only question was whether they were going to have to hand over partial ownership as part of their bailout.

DC3 LS, Fuck Hyundai, now and forever > jminer
06/08/2020 at 23:02

I have a conspiracy theory the stock market is determined by a bunch of computer systems that are so fast and take input from all the other one s output that all market changes are analyzed and move on so fast by the computers that to humans it just seem completely random.

jminer > DC3 LS, Fuck Hyundai, now and forever
06/08/2020 at 23:08

That is literally 80% of the stock market.

I regularly listen to an economics program ‘Marketplace’ which regularly says “The stock market is not the economy” and recently has taken to saying “The stock market is maybe aliens?” since the moves in it have made almost zero sense lately.

I would strongly recommend their podcasts as they’re a good way to keep up to date with what’s going economy without the rhetoric.

DC3 LS, Fuck Hyundai, now and forever > jminer
06/08/2020 at 23:16

I’ll check it out, I’ve never understood why there’s so much emphasis on the stock market. My understanding 99% are trades between investors that don’t effect the company’s finances one bit, yet companies behave like stock prices are the end all be all of their business.

Granted I’m pretty ignorant about finance, but I’m pretty sure if you removed business legal obligation to do every thing in the interest of the stockholders (guess I answered my own question from above lol) a lot of the public and labor’s complaints about big business would disappear pretty quickly.

jminer > DC3 LS, Fuck Hyundai, now and forever
06/08/2020 at 23:24

There’s a little more to it than that but yeah stocks are a way for companies to raise capital without going into debt, a way for large investors to get a say in how a company is run or even a way for someone to seize control of a company.

As I understand it there isn’t any actual legal obligation to share holders - it’s just what’s done in our current economy mostly to keep those in charge in power . If the stock price tanks under you - the shareholders can vote you out and so on. It’s also the focus of most organizations as a lot of compensation is usually tied to stock price. M ost CEOs are paid with a large portion of stock so if they goose the price under their tenure they make more...

A company who’s share price is $0.50 cents is might make more money than one that’s with $1, 000 it’s just a nutters metric we’re driven to focus on. For example Honda’s shareprice is $28 right now and GM’s is $30. I think that Honda is on a far better footing long term than GM yet that’s their share price (also why I own a fair bit of Honda stocks and no GM).