Opinions
Christine Poole
Avis Budget Group
CAR-Q
DON'T BUY
Feb 17, 2017
$33.760
Stock price when the opinion was issued
Consumer Products
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
COMMENT
Avis bought out Avis Europe at the beginning of the 4th quarter and basically took a write off. Has recovered very strongly from the great recession. There is a little bit of growth in the number of cars being rented. 1st and 4th quarters are their worst quarters but they make money in the summer. Margins are being squeezed by competition and people unwilling to pay.
Consumer Products
BUY ON WEAKNESS
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.
Consumer Products
Advertising
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.