Hertz Global Holdings (HTZ-N)

Down 36% in the last 3 months. He believes in the company, but consumers feel that their rental rates have gotten expensive.

A good CEO with a decent track record, but he is worried that some things are getting too expensive in America, including car rentals.

This has been selling off on ho-hum volume. At a very low interesting level. If you don’t have it yet and have been waiting to have it, then you could start pecking away here. If he were buying, he would take half a position now. There is nothing in the volumes that show him that anything is going on.

(Top Pick May 20/14, Down 29.98%) He sold because the board said they had messed up accounting and to restate earnings for the last 3 years.

(A Top Pick April 28/14. Down 24.08%.) He couldn’t imagine a company, after spending all the time they did promoting their wares and a director suddenly saying that he thought there was a problem with the earnings for the past 3 years. Because of that, he sold his holdings.

Big in the airport business. A great way to play the pickup in business travel, not only in terms of the number of rentals, but as times get better, people upgrade to higher-quality cars with more bells and whistles. The same thing is true for consumers at the airport. Away from the airport, there is tremendous growth opportunity in providing cars to insurance companies and their clients. They are also using some interesting technology to build up retail business. Also, rent a fleet management business along with being in the equipment rental business which will probably be a fast spinoff next year. Looking for rapid growth in their China venture.

A unique way to play a pickup in American business. They combined the Hertz, Discount and Thrifty line in one counter.

Potential spin off its metal business. Then it can move up to the level of Avis. A great business. Airport rentals, then insurance rentals and finally personal rentals are their biggest areas of business. It is a premium brand, but they took over Thrifty. As job growth continues, he sees the travel business improving.