Avis Budget Group, Inc. (NASDAQ:CAR)

Good cost cutting and waste reducing over the last five years through the PEx (Performance Excellence teams) and strong EBITDA levels should give AVIS some good earnings news in February and will keep the company going strong for a while after that.

Awful business! When CAPEX consistently exceeds a company’s revenues its best to stay away from the stock.

corp sales will grow in 2011, cost reductions being maintained and expanded, strong focus on only growing profitible business segments

Economy is picking up. Company notes increase of corporate accounts as well as leisure accounts as a result, with corporate accounting for 50% of revenue. Decreased automobile production, and lease availability due to cash for clunkers government program. Shortage of available cars leads to increase demand for rentals.

Budget rental is dirt cheap and account for only 1/6th of revenue stream. Still, it attracts frugal customers, some of whom are relocating to find work.

The acquisition of Dollar Thrifty may be expensive, but if the integration could be done right, Avis/Budget could become a more substantial rival to Hertz and Enterprise. Also, Dollar Thrifty has 20% cash, which Avis/Budget could use.

Finally, Avis/Budget restructured its company to decrease operating expenses, while surreptitiously raising overall rental rates. Customers didn't seem to care.

improving business travel conditions

no

Stock price has gone bananas but they are still making a loss every year, and will continue to do so until they go pop.

would look to buy puts on any decent sized pop.

Interesting EPS, book value, management, and at a 52-wk high? An heroic opportunity.

Just look at that horrible balance sheet and try investing one hard-earned dollar on that company!

Over $1,000,000,000 of their "assets" are absolutely worth nothing. Let alone, their inventory is not even worth close to its supposed book value.

ht other fools

* Has gone up 30x in the last 5 months vastly outperforming S&P with no accompanying fundamental story

going up

A good hedge

Seems to have been going up too rapidly.

Absolutely atrocious financials. Steer the freak away!

This one may even be worse than DTG, which I didn't think was possible.

am i the only one who thinks this stock is way overvalued? whats changed since their march lows? as quick as this stock rose up, its headed just as fast back down....

Pros: They are not destroying shareholder value quite as fast as their 5 year average. They can buy cars pretty cheap right now.

Cons: Debt/long-term risk of bankruptcy, severe current car rental market, HTZ very slightly healthier although even more overpriced. Enterprise probably healthier too. Enterprise is the only one with a decent marketing campaign. Airline bankruptcies and other severe travel-related events are possible in the near future.

Merge and the money will Splurge.