Hertz Global Holdings Inc stock started surging on June 4, 2020 from US$0.8 to US$1.45. Then suddenly it reached a peak of US$3.49 on Thursday June 5.
This unexpected surge came two weeks after the giant car renting company filed for bankruptcy on Friday May 22.
The decision came after Covid-19 global lockdown caused a radical decline in Hertz’ business. This latter was already suffering from about US$19 billion in debt and four years of consecutive losses.
Founded in 1918 by the 22 year-old Walter Jacobs in Chicago, Hertz managed to survive two world wars and several recessions.
But the lockdown decisions taken by most of the world leaders caused a sudden and brutal halt to the company’s activity. This time the damage was impossible to tackle.
However, the company still holds an impressive number of vehicles; about 700,000 worldwide. Apparently, this information played a role in the shocking surge in the Hertz stock value.
In fact, vehicles, buildings, and other assets may bring enough cash to pay back the US$19 billion debt. The liquidation may also generate a juicy compensation for stockholders.