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  • Bankrupt Hertz Pops 51% In Pre-Market On $1 Billion Share Sale Plan

    Bankrupt Hertz Pops 51% In Pre-Market On $1 Billion Share Sale PlanCar rental company Hertz Global Holdings (HTZ) is reportedly asking a bankruptcy judge for permission to raise as much as $1 billion from a stock sale, to benefit from its recent share rally.The stock surged 51% in pre-market trading after closing 18% lower at $2.06 on Thursday. Shares more than doubled this month as investors piled up on the stock amid some optimism that Hertz may be able to work its way through bankruptcy proceedings, while travel is poised to rebound following the coronavirus crisis.As part of the plan, Hertz is offering as many as 246.78 million common shares with help from Jefferies LLC, according to a court filing seen by Bloomberg.“The recent market prices and the trading volumes in Hertz’s common stock potentially present a unique opportunity for the debtors to raise capital on terms that are far superior to any debtor-in-possession financing,” the company said, referring to a traditional bankruptcy loan.A share offering would avoid new interest, fees and restrictions on Hertz’s finances and wouldn’t impose any claims from a bankruptcy loan that would outrank existing creditors, the company said.In addition, Hertz said it would warn any potential buyers “the common stock could ultimately be worthless.”Its lawyers requested an emergency ruling “given the volatile state of trading in Hertz’s stock.”Meanwhile, Hertz earlier this week pledged to challenge plans by the New York Stock Exchange (NYSE) to delist its common stock from the exchange. The debt-strapped car rental company appealed the determination and has requested a hearing before the NYSE.The exchange made the decision after Hertz disclosed on May 22 that it has commenced voluntary petitions for reorganization under chapter 11 of the Bankruptcy Code.“At this time, the common stock of the company will continue to be listed and trade on the NYSE pending resolution of such appeal” Hertz said.The company's stock plunged over 70% in value year-to-date. The troubled car rental company has a bearish Moderate Sell consensus from the Street with 2 recent Hold ratings and 4 Sell ratings. (See Hertz stock analysis on TipRanks).The average analyst price target stands at just $2.33, implying 13% upside potential in the shares over the coming year. Deutsche Bank analyst Chris Woronka has a Hold rating on the stock with a $3 price target, saying “it’s difficult to fundamentally analyze the company” due to the bankruptcy proceedings.While the “reopening trade” for stocks set to improve post-lockdown has become popular, Woronka nevertheless finds himself “questioning the true depth of the buying in what increasingly feels like a capitulation-type short squeeze being exacerbated by high frequency trading programs.”Related News: Beleaguered Hertz Sinks 36% In After-Market On Bankruptcy Protection Filing Hertz Down 11% After-Hours As Carl Icahn Sells Stake At $1.8B Loss Global Airlines Are Set To Lose $84.3 Billion In 2020, IATA Says More recent articles from Smarter Analyst: * Lululemon Drops 5% in Extended Trading After Quarterly Results Miss * Twitter Removes Accounts Linked To China, Russia, Turkey Due To Information Manipulation * Regeneron Starts Human Clinical Trials Of Covid-19 Antibody Cocktail * Emergent Bio Signs Covid-19 Vaccine Manufacturing Deal With AstraZeneca

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  • Edited Transcript of ADXS earnings conference call or presentation 11-Jun-20 3:00pm GMT

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  • Why the Seven Group share price was up 2% on Friday

    shares higher, growth shares

    The Seven Group Holdings Ltd (ASX: SVW) share price is up 2% today following an investor presentation released this morning. The presentation was given to analysts by Mr Ryan Stokes AO, Managing Director and CEO of Seven Group.

    What was in the announcement?

    The article included updates about the company’s WesTrac and Coates hire subsidiaries. It also included updates regarding Seven Group’s energy assets, media assets and capital management situation. It was a positive announcement overall which was reflected by the company’s higher share price today.

    WesTrac

    Seven Group’s Westrac subsidiary has performed well through the recent coronavirus crisis. According to the announcement, the pandemic has so far had a minimal impact on the key drivers of mining production along with fleet utilisation and age. Revenue of the subsidiary for the year to May 2020 was up 15% on the prior corresponding period. WesTrac was recently awarded new contracts from several mining companies including Rio Tinto Limited (ASX: RIO).

    Coates Hire

    The group’s Coates Hire business has been negatively affected by coronavirus with both the events hire and construction hire businesses impacted. Lockdown measures are estimated to have adversely impacted vertical construction productivity by 30% and horizontal construction activity by 10%. Despite this, the business reported that year to date revenue was up 2% on the prior corresponding period. It also announced that governments were focused on accelerating ‘shovel ready’ projects with demand for engineering and construction poised to benefit. The company reported that Australia was in the midst of its largest ever transport infrastructure boom with investment set to reach $18 billion per annum by 2023.

    Energy

    Seven Group reported that gas prices for 2020 contracts had remained strong. It also boasted that through its investments in Beach Energy Ltd (ASX: BPT) and SGH Energy the company had the potential to take advantage of a projected supply gap for gas beyond the next 2-3 years.

    Media

    The company reported that government measures surrounding coronavirus had negatively impacted advertising revenue for Seven West Media Ltd (ASX: SWM). It also announced that it had made some media asset sales and realised more than $140 million in the process. Additionally, it reminded investors that Seven also had other media investments that would expose the group to growth in China’s media, entertainment and consumer sectors.

    Capital management

    Seven Group’s announcement regarding its capital management was positive with the group reporting it has over $700 million in new funding available. It also announced that its private placement, priced in May, was oversubscribed with US$865 million in bids received. It also has $616 million in existing committed undrawn facilities.

    About the Seven Group share price

    The Seven Group Holdings share price is up 95% since its 52-week low of $8.92 reached in March this year. The company’s share price closed at $17.35 on Friday which is 10.89% down since the beginning of the year.

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    Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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