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Bankrupt Hertz Stock Soars 100% On Relentess Flood Of Retail Daytraders

Courtesy of ZeroHedge View original post here.

Two weeks ago we explained "How Retail Investors Took Over The Stock Market" and the confirmations of this just keep coming day after day.

On Monday we reported that "having stampeded into Hertz stock as it was plunging over the past three months, one would expect this bizarre BTFDing to end after the auto rental giant filed for bankruptcy. After all, with the company set to equitize billions in debt, there will be zero left for existing equityholders. Well, one would be wrong…"

not only has the retail stampede of Robin Hood traders into bankrupt HTZ not moderated, but in the week since the company sought bankruptcy protection, the number of Robinhood holders of the worthless stock has increased by a 50%, hitting a record high 60K according to Robin Track.

Fast forward to today when a quick update from Robintrack reveals that another 10,000 Robinhood users have piled into the bankrupt stock, bring the total holders to a record 73,873 and sending the stock price 100% higher, to just above $3/share after hitting a post-bankruptcy record of $3.70, reflecting a market cap of around $500 million.

As a reminder this is $500 million in equity value that is absolutely worthless since the company has no choice but to equitize its debt and will wipe out its pre-petition equity, yet all of this is lost on retail investors who keep piling into the bankrupt name expecting even more "greater fools" to buy their stock at higher prices.

And while one can, in theory, explain this ludicrous and relentless euphoria to the perpetual BTFD "strategy" spawned by central banks, which now step in every single time there is a modest market pullback, at this point one just has to sit back and laugh at the casino that Powell's "market" has become.

Or maybe retail investors will have the last laugh after all, as Powell will one day shock the algos and the veteran Robinhood millennial traders, and announce it will buy Hertz stock. After all, as we first reported last weekend, it already owns defaulted HTZ bonds via the various junk ETFs it has been buying in recent weeks. At this point, Powell may as well go all in.


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