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Hertz Files For Bankruptcy Right After 44,000 Retail Investors Bought The Dip, The Rich Dump Stocks

Published on Sun, May 24th 2020 People & Blogs Rectangular HD

Hertz has filed chapter 11 bankruptcy, retail investors have been pouring into Hertz assuming they found a perfect opportunity in the 2 months before the company filed for bankruptcy. looking at the recent robin hood activity 44,000 retail investors have bought the stock following the collapse in price. Carl Ichan the billionaire investor became thee companies largest shareholder at 38% and acquired around 26% of that leading up until around mid-march. The funny thing is that's the time the retail investors began pouring in which brings us to a very important phenomenon that usually is a strong signal that we have entered a recession which is a pile of retail investors show up when the 1% begin to flee for safety. This may be what has given strength to gold in recent months and there is no safer asset than real money in a time of excesses money printing and excess valuations. An interesting thing has happened, retail investors have become the most bullish in years as the majority of institutional investors have turned very bearish. Hertz is also having some good sales on it's inventories of cars but since this company has been operating for 102 years and holds the largest market share of the car rental companies it will be interesting what will happen with Avis and Enterprise rental companies as used car prices have already collapsed and we may soon see a large inventory of cars dumped onto the market.