Dollar Thrifty: Bull or Bear?

After one investment columnist gave its dreaded one-star ranking to Dollar Thrifty Automotive on Jan. 19, shares of the company were on the rise on Feb. 1, according to tradingmarkets.com, crossing bullishly above their 10-day moving average of $25.37 on volume of 214 thousand shares.

“This may provide swing traders with an opportunity for a long position as such a crossover often suggests higher prices in the near term,” wrote Chip Brian of TradingMarkets.com.

Another investment writer Brian D. Pacampara countered in his “The Motley Fool” column on msnbc.com that Dollar Thrifty “operates in a terrible industry, with too many competitors and no company enjoying any durable competitive advantage.”

He also wrote that on CAPS, 84 percent of the 204 All-Star members who have rated Dollar Thrifty believed the stock would underperform the S&P 500 going forward.

One of the CAPS members wrote that at its Jan. 19 price of $27.55, Dollar Thrifty Automotive is selling at two times book value despite the fact that it is currently losing money and “despite the fact that the company's long term returns on equity are tepid at best.” He added that “I believe Dollar Thrifty is likely to disappoint.”

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Car Rental Rates Up, Fleet Sales Down — Correlation?

Car rental companies’ recent fleet discipline is needed now more than ever.

Hertz, Avis Autonomy Partnerships: Good First Steps on a Long Path

Two new autonomous vehicle project partnerships bring the importance of fleet management to the fore.

An Inside Look at Car Rental in China

A trip to a new car rental convention in Guangzhou reveals a booming market, yet one facing unique challenges.

Job Finder: Access Top Talent. Fill Key Positions.

>