Around 4pm ET yesterday Avis quietly announced Wednesday April 29 7AM earnings release. Street was expecting May 5-7.
Hedge funds SRS and Pentwater collectively own the majority of $CAR shares. They are both insiders and cannot sell until earnings release. This just pushed up that date by a week.
My thought: many others have speculated, was the 40% drop today a flood of 9 million share sale that Avis filed for in February? Or, at least, fear of it…
So Avis prints billions in cash to ease their debt problem with share sale at 400-700% premium. They boast about it on earnings call, retail buys the dip, providing exit liquidity for the funds that squeezed them.
If this is coordinated, everyone involved wins. Avis eliminates potentially billions in debt overnight. Pentwater and SRS make huge returns off retail. And any shares they don’t dump are now better off thanks to improved businesses fundamentals.
So maybe if we see big iv drop now through Tuesday… the play is calls on Wednesday… depending on how things go next several trading days… full disclosure I am short $CAR. $150 put 6/18
Thoughts ☕️
Avis quietly announces earlier than expected earnings release… exit liquidity for big money?
by inwallstreetbets
Posted by Middle_Cockroach_709
8 Comments
I wish I could read
Idk, sounds gay regardless of what’s going on
“Everyone involved wins”…. 😂
What an absolute stack of fuckery with this ticker.
Gonna need it to dump to 85 real soon
I have no idea if you’re right but it feels like you are
Let this POS of a stock die today
100%. Pentwater and SRS can just stay put and see their stock underlying value double from the 5M retail inflow at $600 avg (let alone if SRS sells some post blackout) and whomever drove up this rollercoaster also pocketed a lot… all at the cost of retail ofc.
But not sure about the dead cat bounce next week.