NEW YORK (TheStreet) - Shares of Hertz Global Holdings (HTZ) are down just 6% in 2014, despite the company's announcement on Friday that it will restate its financial results for 2012 and 2013, as accounting irregularities date back to 2011.
The company's investigation is likely to conclude sometime in the middle of 2015. At one point, shares were down 12% on Friday, before recovering and ending the day down just 5%. On Monday, shares climbed nearly 3%.
The car rental business should interest investors, considering that 96% of airport car rentals are controlled by just three companies. One of these companies is private -- Enterprise -- and another has accounting irregularities, where should investors turn?
Avis isn't plagued by accounting issues. While the company only forecasts prices to rise 1% for full-year 2014, that should change going into next year. Mohr reasoned that with so much business being shared by so few companies, car rental prices are bound to increase in 2015.
This is a common theme in the airline industry, he explained. After airlines continued to consolidate, the group didn't have to engage in such heated price wars. With even less competition in the car rental space, there's no reason prices shouldn't head higher.
Investors looking for exposure to this space shouldn't be scared off by Hertz. Instead, they should simply buy Avis, Mohr concluded.
-- Written by Bret Kenwell