Gavin Graham Avis Budget Group CAR-Q COMMENT Feb 24, 2012

The whole rental business is going through a difficult period. The popularity of Uber is actually a negative for car rentals. It is quite competitive in terms of pricing. The business is pretty difficult and she would not invest there.

All the rental car companies are extremely volatile. They tend to be small. A lot of the spending that goes there is very cyclical. No one has to rent a car. They are also up against Uber. However, the companies are cheap and just crying out for consolidation. On pullbacks, he would add to positions.

Used cars took off two years ago, and this got caught up in meme trading. Their PE is way off the charts, and used car prices are declining. We also face a recession if not now then next quarter.