Hertz CEO Is Really Bullish

June 25, 2009 at 12:28 pm  ·  Category: Market Commentary, Stocks

We’ve seen continuous improvement every single week for the last 10 weeks in the US rent a car space on improving demand for the summer season.

We’ve been buying a lot of cars the last 8 weeks…. We’re scrambling to buy as many cars as we can.

– Mark Frissora, CEO, Hertz, this morning on Squawk Box

 

Hertz’s (HTZ) CEO was really bullish this morning after his company pre-announced better than expected 2nd quarter earnings on improving demand for rental cars.  They forecast an 11.4% increase in car rental transaction days year over year for the 2nd quarter on top of 13.4% in the first quarter.  He told CNBC that they’ve bought 16,000 US vehicles for $350 million in the last 8 weeks.

This is the first I’m really hearing from a CEO in an economically sensitive business whose seeing real demand improvement.  Not sure I believe it but have to pay attention to it.

Hertz shares shot up 16% today on strong volume.

htz-3-month-chart

Posted by Greg Feirman  ·  Trackback URL  ·  Link
 

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