Hertz Global Holdings (ticker: HTZZ) emerged from bankruptcy on June 30. The shares in the reorganized company, now trading around $16, look appealing. But the better bet is the company’s warrants (HTZZW), trading at $7. The 30-year warrants, a call option with an exercise price of $13.80, are statistically supercheap.
The rental-car company, valued at $7.5 billion, is coming off a successful second quarter, and the current quarter could be even better thanks to strong pricing that reflects robust demand and scarce vehicles.
