Jim Cramer -- Hertz Has Been One of the Worst Stocks

Shares of Hertz (HTZ) are plummeting Tuesday, down almost 50% after the vehicle rental company missed on earnings per share and revenue expectations and provided weaker-than-expected guidance. 

"This has been a disaster," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment. "This has just been one of the worst stocks to own in this era."

Cramer added that management is never direct with its investors and never says how bad the situation really is. 

Higher operating expenses, softer rental volumes, a recall and a vehicle depreciation "surprise" plagued this quarter's results. Where's the surprise come from? Cramer asked. Why can't they foresee these roadblocks? 

The car rental business is highly competitive, and Hertz has been a wealth destroyer for investors and hedge funds, he said. It's no surprise that investors are heading for the exits in droves and giving up on this stock. 

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

 

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