There is a volatility in the stock markets that does not search for altcoins. The shares of Hertz, which applied for a concordat in the past few weeks, rose nearly 900 percent in two weeks.
Cryptocurrencies that do not look for cryptocurrencies take place on Wall Street, while names that are familiar with the traditional markets are due to excessive volatility.
Shares of US-based car rental company Hertz Global Holdings (HTZ) have grown from close to $ 5.56 to $ 5.53 in two weeks, up from 900 percent.
This price trend of the company’s shares listed on the New York Stock Exchange (NYSE) becomes even more interesting considering that Hertz applied for a concordat by the end of May.
Hertz suffered a sudden drop in revenues and future revisions due to the sudden and dramatic effects of the outbreak in the travel industry. The company, which has 38 thousand employees and 700 thousand vehicles worldwide, has a total debt of 19 billion dollars as of the end of 2019.
But how can the shares rise despite all this? Speaking to the Los Angeles Times, trader Kirk Ruddy said, “In general, you look at the markets, people don’t know where to put their money. They’re in a position like, “Hey, I’ll try this $ 1 stake.” said.
Significant increases are seen not only in Hertz, but also in other companies applying for concordat. Therefore, it is stated that another reason for the rally in these companies may be “short covering”. This refers to the stock buying process to close existing short positions.
In addition, the mitigation of the outbreak may be another factor that helps price increases in Hertz. As it is known, Hertz’s works are largely related to the customers who go to and from the airports. The aviation industry is recovering faster than expected with the resumption of flights recently. Finally, second-hand car sales are stronger than new car sales and second-hand prices are rising more than expected. This is positive for the company’s 700,000 vehicle fleet.