3 ms·

This article is describing a very obviously risky investment as some sort of "dastardly" plot. It describes the stock as "potentially worthless", and while I wo

by nickff 6y ago

This article is describing a very obviously risky investment as some sort of "dastardly" plot. It describes the stock as "potentially worthless", and while I would agree this is a bad investment, all stock is 'potentially worthless', that's why investors get a risk premium (versus low-risk treasuries). This post seems like a lot of fluff and pointless outrage.

OldHand2018 6y ago
> This article is describing a very obviously risky investment as some sort of "dastardly" plot. It's worse than that. This article is using terminology that all but accuses Hertz of doing something illegal while offering no proof whatsoever: > Multiple media reports have linked Hertz pumping stock to Robinhood traders, a group now notorious for short-term, speculative trading. Is Hertz "pumping" stock to Robinhood traders? Or is it simply recognizing that a ridiculous situation exists and attempting to use the situation advantageously? Seriously, we've all been told that the share price represents the consensus view of future company performance. A 900% gain and a 3x increase in shareholder count is potentially evidence that the market believes that Hertz will emerge from bankruptcy without wiping out shareholders and will become profitable. That's an argument in favor of issuing new shares rather than taking on new debt.
dragontamer 6y ago
> all stock is 'potentially worthless' There's a big difference between most stocks, and Hertz which is currently under Chapter11 bankruptcy proceedings.
- qeternity 6y ago
  > There's a big difference between most stocks, and Hertz which is currently under Chapter11 bankruptcy proceedings. Indeed. With "most stocks" you have to do lots of work to figure out if they're actually insolvent. With HTZ, they've gone through the hassle of telling you up front.

3 ms·

This article is describing a very obviously risky investment as some sort of "dastardly" plot. It describes the stock as "potentially worthless", and while I wo

by nickff 6y ago

OldHand2018 6y ago
> This article is describing a very obviously risky investment as some sort of "dastardly" plot. It's worse than that. This article is using terminology that all but accuses Hertz of doing something illegal while offering no proof whatsoever: > Multiple media reports have linked Hertz pumping stock to Robinhood traders, a group now notorious for short-term, speculative trading. Is Hertz "pumping" stock to Robinhood traders? Or is it simply recognizing that a ridiculous situation exists and attempting to use the situation advantageously? Seriously, we've all been told that the share price represents the consensus view of future company performance. A 900% gain and a 3x increase in shareholder count is potentially evidence that the market believes that Hertz will emerge from bankruptcy without wiping out shareholders and will become profitable. That's an argument in favor of issuing new shares rather than taking on new debt.
dragontamer 6y ago
> all stock is 'potentially worthless' There's a big difference between most stocks, and Hertz which is currently under Chapter11 bankruptcy proceedings.
- qeternity 6y ago
  > There's a big difference between most stocks, and Hertz which is currently under Chapter11 bankruptcy proceedings. Indeed. With "most stocks" you have to do lots of work to figure out if they're actually insolvent. With HTZ, they've gone through the hassle of telling you up front.