Hertz trades higher after adopting poison pill

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Michael Fowlkes 12/31/2013

Shares of hertz Global Holdings, Inc. ( HTZ ) are higher on news that the company has adopted a shareholder-rights plan. The plan, known as a poison pill, was taken as a step to prevent investors from assuming a controlling stake in the company. The move was taken after the company spotted "unusual and substantial activity" in its stock. The poison pill will take effect if any one shareholder acquires a 10% stake in the company. Should this occur, existing shareholders will have the right to buy additional stock at a discount, a measure that companies take to discourage any potential takeover activity.

Hertz ( HTZ ) rents and leases cars and equipment.

Marvell Technology ( MRVL ) and ZOOM Technologies, Inc. ( ZOOM ) top the list of other companies with positive news today, while Hewlett-Packard Company ( HPQ ) and Pfizer Inc. ( PFE ) top the list of companies with negative news.

IK-> The technicals for HTZ are bullish with a strong upward trend. It has support at $24.18. The stock is up 5.5% today at $27.34. The company next reports earnings on February 24. Look at the February 20/24 bull-put spread for at least a $0.20 credit. Use limit orders. This trade has a target return of 5.3% and the stock has to fall 12.2% to cause a problem. [InvestorsKeyhole, Various news and data services]



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Originally published on InvestorsObserver.com


This article appears in: Investing , Options

Referenced Stocks: HPQ , HTZ , MRVL , PFE , ZOOM

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