If you could pick one stock that embodied the unpredictable volatility, and unprecedented weirdness, of the year 2020, Hertz (OTC: HTZG.Q) would be near the top of the list. While Hertz’s downfall amid 2020’s travel restrictions made sense, the company’s stock went on a wild ride that included burning billionaire hedge fund manager Carl Icahn, an unfathomable near-900% spike from late May to early June, filing for bankruptcy protection, and an inevitable delisting from the New York Stock Exchange (NYSE). With all that said, the company is still making big moves and traders are still buying and selling the stock, so are Hertz shares really worthless?
Let’s start with the blunt truth: Hertz is a bankrupt company and its shares have been delisted from the NYSE. With that out of the way, there are a couple of questions that investors seem to have, so let’s try to sort them out.
First, many are likely wondering: If the company is bankrupt, why is it still operating and why are its shares still trading? Hertz is classified as an essential business, which means it will continue to operate with cash on hand while the bankruptcy process unfolds in court. There are a number of possible outcomes, but the most likely scenario is that Hertz restructures and emerges as a new company with new shares, while the former Hertz common shares are canceled and become worthless.