Negative European car rental outlooks yesterday from Avis ($CAR stock) sent rival Hertz Global ($HTZ stock) stock tumbling -15% in 2 days. After an unsuccessful bottom pick yesterday, we decided to give it another try today as we felt Hertz is a value buy based off comparing their eps growth rate and forward p/e ratio. Their eps growth rate is around double their forward p/e ratio making it a fundamental buy.
When the tape told us that buyers were stepping up to support the stock, we jumped back in. This time we caught the bottom pick just right and rode it quickly for a nice profit. We would have liked to hold the long position for more price appreciation but decided to just take profits as the stock stalled on the upside move temporarily.
Net profit: +$3,549.