Avis Budget Group, Inc. (NASDAQ:CAR)

Car rental industry is strong. Rates increased with consolidation and hurricane sandy fleet disruption. As a result revenues are improving and earnings are growing faster.

The acquisition of Zipcar should provide Avis with a clear lead in the rapidly growing car sharing market. I believe the company will benefit greatly from synergies, allowing it to take a marginally profitable business and drastically improve the margins and the pace at which Zipcar expands into new markets.

You do realize that you could have bought this stock for 50 cents in 2009, right?

Money printing destroys the value of Property, Plant & Equipment on a balance sheet without increasing economic activity which a company can profit from.

Rental car companies. Bottom dwelling scum.

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.