Jim Cramer: Investors need to understand risks of buying stock in bankrupt companies like Hertz

[@financialfox8088]

This market doesn’t make any sense... companies that are going bankrupt, their stocks are going higher!

[@Guy-ky9mc]

remember- htz had extremely high short interest. Those shorts have to "buy" back the stock to close their position and it can cause massive moves

[@chessandmathguy]

@@Guy-ky9mc yeah this could just be a short squeeze or some short term traders having a little fun.

[@JaiSuresh]

A neighbor's kid buys and dumps for short term fun. This is boredom driven gambling. That thing in your hand is the bag.

[@bradmcgrath1692]

It does make sense ,we are witnessing the largest transfer of money in history,to the top.its cheaper for these rich cats to put the money in the markets. When they get ready to take more profits they they will crash the markets and only have to pay capital gains. Putting this cheap,found money in the markets is the safest,cheapest way to steal more. It will never be enough for them And the Christian god fearing republicans love it,and don,t see how stupid they look while loving their god trumpass.ttump one of the biggest con man ever

[@Kenz3]

When I buy bankrupt companys I’m not investing I’m flipping 😂

[@guangxidavidliu]

Fools and their wealth soon apart. Let it be.

[@SpeedOfDarknesss]

Natural selection for productive capital :p

[@benjamin7114]

If it was a hedge fund guru buying, you wouldn't be saying that.

[@guangxidavidliu]

@@benjamin7114 There is NO Guru in hedge funds. Anyone can open a hedge fund. If institutional investors buying, then that will be something else.

[@regul8or71]

Yep. Sometimes an ass-kicking will turn a fool into a wise man. Sometimes.

[@CodFatherCali]

Hold the bag day is coming soon

[@toddb930]

I learned this valuable lesson in 2009. I had several positions on the auto supply company LEAR. It ended up going bankcrupt and I ended up with nothing. But during that time I watch people getting sucked into GM, which also filed for bankruptcy, and they were buying inexpensive shares even though the filing took place. They learned a lesson too. Fortunately I had some Ford at 2.50 a share. I was able unload that when it got up to 10.

[@Countcho]

This is all the stimulus money. People are just gambling, nothing wrong with that.

[@j_misinterpreted_relephant7661]

Yes but now the stocks are at highs and will be stuck in a bubble for who know how long.

[@MadShenans]

Ok then what’s the drawback from buying massive puts on HTZ or CHK?? Free money?

[@gregguess5248]

Why didn’t he post this yesterday ?

[@slyfer2009]

He had to make money on it first. Sure he is shorting it now

[@stevenchen4710]

I got my 110% gain and sold it

[@sergiocardoso9133]

Nice you got lucky, don't get hooked on this kind of play

[@legendaddy3146]

I got my 650% gain and sold it. It was only $8 and went up to $52.

[@rockwithyou2006]

Carl Icahn sold 55 million shares at 72 cents. And now the stock is above $5. Great visionary.

[@Circinus13]

because he knows trading in a bankrupt company is like pushing all your money on red in vegas.

[@robertparris532]

Nobody is buying these bankruptcies to hold long term. For example...Sears last year. Stock dropped down into .30s but went to like $2.70. Now it is basically a zombie. But if you bought in the .30s, 40s, 50s and sold in the $2 range you did very well. There are timelines and they are posted to the court. IOW there is a 2-3 month trading range that moves like crazy. Big ups, big downs, back up. No one is buying to hold to see how the bankruptcy plays out. They are in and out with profits. Back in during dips, back out in ups. Same thing happening now in JCPNQ and SSINQ. Already in to nice profits. Yes it is risky. High risk, high returns. To not understand this is gross ignorance.

[@atimko123]

Great content and subject I was wondering about that. by the way if you slow the playback speed down to 50% Cramer sounds like a really cool guy sitting at the bar at midnight

[@allstarmark12345]

Doesn’t matter. Hertz going to 10 lol

[@BMORETODAY]

🤞🏾🤞🏾🤞🏾🤞🏾

[@mr.benjaminfranklin7108]

10 cents 🤣

[@pabliux142]

Hey wsb:)

[@chimenemndu5106]

Didn’t age well at all, it peaked at $96

[@MichaelWhitman]

I made 10k playing this stock since it went bk. We all know its going to fall at some point but its all day traders

[@AnimEva_33]

That's the sad part, it isn't all day traders. There are actually some people that think there is value here

[@beautyathomelr4560]

Cramer I think your wrong on this one

[@CoinsInTheWild]

i partially disagree with him, all these wall street types, are upset because the common man is beating them at their own game, anyone should hav e known a bk'd hertz would trade for awhile, before becoming worthless, and with nearly a billion in cash on hand it was worth the odd's true there will be some bag holders, but again even the bag holders know that, its the "odd's" knowing that at pre run levels it factors at 1100 percent return on investment, its always a good trade when the odds are at least 3 to 1 in your favor, boo hoo Jim. Sorry wall Street types you dont own the market anymore....i think the headline will read "it was the greatest transference of wealth"

[@exdemocrat9038]

Of course a socialist disagrees with a capitalist.

[@chessandmathguy]

Doing one winning trade here and there is not beating them at their own game. Some traders start trading, make profits on their first 2 trades, and think they're geniuses. If you can make your wins exceed your losses for a decade, then we'll talk. But an occasional win here and there, and them claiming victory, is foolhardy. One seasoned trader says you need to do 100 trades and come out on top, then you can say you've got this.

[@fantablack1998]

TRUMP 2020 Can you return to your hole.

[@CoinsInTheWild]

@@chessandmathguy i'm on track for 100 profitable trades thank you for the confirmation...

[@henrymartin6836]

Does this mean I should buy put options on HTZ?

[@ifonlyunu994]

The boomers are so salty behind this HTZ. Investors saw an opportunity and it panned out really well for them.

[@DigitalYojimbo]

It was a pump and dump pure and simple, I was eyeing it when it was sub $1 knowing it was coming but I'm salty I didn't buy.

[@SpeedOfDarknesss]

It's an opportunity in the same sense beating up someone and taking their lunch money is an opportunity.

[@gregzamora9]

You explain things so good , thanks bro. Ive been watching you since I was a child. YOUR THE MAN !!!

[@gregzamora9]

thank you. Without that info I'm nothing. Thank you again , I don't know what I'd do without your info...... You'r sooooooo smart, congratulations!!!

[@BITCOIlN]

Do you really want to Hertz me, do you really want to make me cry.

[@williamsmith9921]

Hmmmm, sounds little a bit 🌈🐻.

[@StoneRunning23]

Trying make sense of the company now. Like to hear thoughts on company now. Held the HZTGC and now converted. Jimbo??!

[@iratkozzfel8451]

I made almost 3k with Hertz yesterday so i buy again tomorrow!

[@iratkozzfel8451]

I am optimist!

[@AndyB1993]

You have bigger balls than I do lol

[@khary30]

Lol might as well just put 3k on red

[@luck70]

@@iratkozzfel8451 40% loss, rip

[@markyouneva7840]

Jim Cramer, investors need to understand riskss of buying stock in [any] company. There could be highly unethical, corrupt, or misleading things going on at even the best brands (remember Lehman? Enron?) You should be teaching your viewers/public to 1. not invest anything they can't comfortably lose; 2. create a portfolio with balanced risk and true diversification; 3. learn how to research and invest in companies that are making a difference.

[@lefthandedhardright8839]

Hold my beer, I'm going all in on Hertz.

[@SR-hl5vz]

YOLO Babbayyyyyy

[@ericdon4573]

3:43 BUY AMC AND GME

[@heath346]

Who's laughing now

[@whatever_it_takes6691]

So life savings into Hertz??

[@followertheleader]

Got it, buy hertz.

[@junioag7694]

macys kicked me low today it hurt

[@mcied1]

I sold an 8.5p yesterday. It'll rise after the FED announces they're pumping another 2T in the market tomorrow lol.

[@YallahYah]

Who's here after HTZ got delisted?

[@money58610]

Thanks for the info am sure you helped a lot of people from investing in hertz and loosing there money

[@kevn99]

#losing 😅

[@realestaterhino7980]

This comment didn’t age well. Im up over 17k since the bankruptcy. Lol.

[@KK-pm7ud]

CNBC finally getting a conscience and realizing that pumping BK companies to Robinhooders is not good karma.

[@word_man]

it's definitely the Robinhood investors driving the market at the moment. they're about to learn a valuable lesson. should be holding cash right now if you're long term.

[@davidp5722]

True that. I was up 1.7k yesterday but got greedy... and today I am down about 350. I still think htz is a good long term. Things have to return close to "normal" sooner or later.

[@davidp5722]

@i get it oh i get it now

[@el.Papi_USA]

They are chapter 11 not 7

[@davegoodwin1848]

Same with RTW retailwinds. They announce they may be filing for BK and everyone in the forums start going nuts about buying now, buy as much as you can. What the heck is going on lately?!

[@JOHNNYFUTS]

I made money on RTW..in and out quick!

[@BMORETODAY]

HERTZ WILL BE UP ON THE WAKE UP TOMORROW!! 🤞🏾🤞🏾🤞🏾🤞🏾🤞🏾

[@mr.benjaminfranklin7108]

🤣🤣🤣🤣

[@el.Papi_USA]

I hope so. I admit I made an emotional buy when it dropped today

[@BMORETODAY]

Junior Payano same here I’m shoook!!! Lmao

[@BMORETODAY]

Quieres Demileche 😒😂

[@peterscherling6594]

March 4th and hertz is expected out of bankruptcy in 2 to 4 months lol better buy the stock cheap

[@phreewill]

well said Cramer.

[@younga6987]

Someone needs to tell Cramer HRTZ is a meme stonk🚀

[@SpeedOfDarknesss]

If someone's money means so little to them they will throw it at a security with no prospects, why not donate it someone who actually needs it or something? It's completely insane behavior.

[@hobbies222]

short hertz lol

[@BD-tm1ig]

before this video i thought hertz goes bankrupt.. but now 🤔

[@alexjones7845]

Maybe. But, if your short hertz you essentially borrow those shares from your broker on margin (loan with interest). If they declare bankruptcy then the stock can be delisted or frozen and you may not be able to buy back the shares when you want (even if the price is lower). So, could be months of paying interest on margin to your broker even if your short is correct.

[@edos3783]

does valuation even matters?

[@KK-pm7ud]

How may Robinhooders are looking up how to buy Hertz bonds right now?

[@williambrantley8621]

Me!!!!!!

[@themastermind8175]

I’ve made a lot of money trading this stock since it went bankrupt. I think very few are looking at a long term roi, If you are, I’d invest only what you’d be willing to gamble with and not mind losing. It’s going to take a long time for hertz to pay back all of the loans they recently received.

[@rubinturner8233]

Lol it's a shame. They should've stopped them from a buying those stocks.

[@dheyan19]

Printer goes brrrrr

[@davidl242]

Wowwwwww... stocks are worthless in bankruptcy? Who knew......... the reason people are still buying is because there are enough risk takers our there who are betting on a turn around with a financing deal that will at least put some value for existing investors. Is Hertz a fcking land mine...probably, but in the case it is not...the people who are buying now are going to make hug returns. Correlation of risk and reward is the lesson Cramer should be bringing up.

[@MRIWITNESS]

CAN YOU TALK ABOUT THE BURGERFI IPO?

[@FLYINGNALIN]

Look at PCG and do a segment on it

[@highpeaks3598]

Casinos are closed, so junk stocks are the next best option to blow cash.

[@mech-E]

When the music stops

[@placeswelive5388]

Did he just say he has an autobiography out? Oh, boy

[@JaronLindow]

"Confessions of a Junky" or something. Explains why he's visibly drunk in half these videos.

[@pryius6216]

I'm really not a fan of Jim Cramer. I don't hate him. I just don't like him. I think he's a decent guy, but very misguided in most of the things that come out of his mouth. This is one of those times when what he is saying is actually not misguided. I still don't like him, though.

[@christianlaville2382]

I don't understand because he does not articulate enough. Too bad because it seems interesting.

[@Erk0806]

Do these people understand how this works. With these people go out and buy a gift card from someplace that’s going out of business ?

[@justinthomas2880]

Here we go again with Cramer giving advice right before economic collapse.

[@chessandmathguy]

His advice is that buying stock in a company that has filed for bankruptcy is very risky and likely a terrible move. Are you disagreeing with that? No? Ok... I didn't think so.

[@jamesxiong9693]

Its crazy how many people are trading on Robin hood right now and not know this lol

[@lairdriver]

These are the same dumb people using their stimulus cheques doing exactly this.

[@AllPureSkill]

Let me hold the bag

[@clarkewi]

The curse of OJ Simpson.

[@jancula9]

bs, I'm all-in in $WLL

[@nickramirez6540]

So it's a good buy? I'm new to this stuff

[@Kharmatos13]

@@nickramirez6540 hell no you don't buy and hold bankrupt companies you ride them up or down and get out the same as wall street does

[@Macky1101]

What about OXY Occidental? Can they pay their billion$ of debt?

[@Guy-ky9mc]

most of these stocks have incredibly high short interest. Those shorts want to take profit at some point so they must buy back in order to close positions & take profit. This can cause spikes and trigger other people to buy on top. I'm sure 'robinhood' traders will be blamed for every "huh?" in the market these days but remember that most of the money in this game is the big, smart money & institutional money. Robinhood traders are not pumping the market to new highs. They are being used as big money's liquidity.

[@crysis63]

at this point, its just straight gambling..

[@teokishd]

Do the opposite of what this guy says and then set a goal, when your equity hits that point, sell out and put the profit into safe stocks and repeat. This dude a clown.

[@alexb1093]

You buying Hertz 😂🤣 Who’s the fool?

[@mr.benjaminfranklin7108]

Whiting is boosting Friday

[@monumento.f.501]

They shouldn't have changed the logo.

[@fortunately2684]

Can I trust this guy?

[@lemonade2473]

All these noobies buying bankrupt companies know they shouldn't, don't warn them, they're gambling, they know the risk.

[@garagebiz1114]

Stock are crashing but crypto is increasing and is profitable rn

[@anthonywilliam1214]

Rich folks see every economic crisis as the best time to invest that's why Investing now would be a wise choice

[@danieldylan5339]

You'll not remain poor if you trade Bitcoin I just made huge profit Wish I knew about this earlier

[@MichaelSmith-lv9ez]

Yes the rich remain rich by spending low but investing very high while the poor spends high yet with no investment

[@pinned7286]

True

[@moonlambo4677]

Yes but for trade to be successful depends on broker ability to trade and your seriousness to invest what can yield a better profit on trade

[@kjbwefohiwljbvjbdsv1519]

Just put all my livesavings in Herz

[@thomashooper9148]

It’s only money man. Don’t sweat it!

[@hvdiv17]

and rebuilding in cities where riots happened.

[@DigitalYojimbo]

Honestly after going through crypto boom and bust, this 'ain't no thang'

[@keithx2524]

Haha love how he calls out Robinhood at the end. Todays episode was brought to you by r/wallstreetbets

[@Africanknight88]

So much dumb money in the market smh.... glad I watched with my money on the sidelines

[@JaronLindow]

Today was fun to watch (June 11). Tomorrow will be more fun.

[@brewsandbass5572]

295 mill ☺☝️

[@demri123]

Just let them learn the lesson jimmy chill

[@jmas12]

DHarrison when the Fed steps in to bailout bad decisions, there are no lessons to learn.

[@zo9fg]

Why not take a short position and profit haha

[@hillarybm92]

Cramer flips flops more than a fish out of water

[@dannyzuehlsdorf3697]

I'm still long WEBVAN

[@AOE5578]

تسمع لذا وتسمع للعريان وعزالله ماتبشر بخير ،،، الحمد لله مااسمع لهم وفي الأخير مطلع ١٠٠ الف دولار من ٤٠٠ الف خلال ازمة كورونا ،،، الأغبياء يحسبون سوق الأسهم " الأمريكي " نفس عام ٢٠٠٨ وقبله ، حاليا العالم كله يشترى اسهم الشركات الأمريكيه وليس فقط الأمريكان ( هذا الإختلاف الجوهري عن ٢٠٠٨) الإنترنت ، اجهزة الهواتف الذكيه و منصات التداول اللي تقدر تنزلها في هاتفك ، اليوتيوب واليوتيوبرز اللي يتكلمون بطريقة وارن بافت كل هذه العناصر جلبت ملايين المستثمرين من العالم الى التداول بالسوق الأمريكي ، مثلا عندما يصبح سهم شركة قويه ممتازه مثل كوكاكولا او بروكتر اند قامبل او ببسي او ام ام ام قريب من ربح سنوي ٤ او ٥ % و ديون اقل من الكاش وارباح تنمو الخ الخ من الأساسيات الممتازه لان يترك هاؤلاء هذه الفرصه ولن تتاح لهذه الأسهم النزول اكثر لانها سوف تسحب مباشره الأسهم الأمريكيه اصبحت ملاذ للأموال ، في ٢٠٠٨ وقبل كانت السندات والذهب والأسهم ملاذ للكاش ، اما حاليا فالأسهم هي الملاذ الشبه وحيد

[@georgiocapobianco1328]

Cramers show should be in bankruptcy. Lol

[@steelerscountry4849]

Don't listen to this

[@jurgenklopp1506]

this guy is a ego hyper charged host who would be a good day trader but a terrible investor

[@herodotus425]

look who's talking now lol

[@adddad9779]

Do people still watch this guy???

[@TheAmandaewing]

lol buy buy buy 2 days ago. now he back pedaling. just another paid talking head. grain of salty.

[@theseafoodguru3532]

It’s a great industry

[@_sr]

damn right

[@nicknickb]

hertz going to 50 by july im calling it now. thank me later.

[@mr.benjaminfranklin7108]

Just like the rapper

[@BMORETODAY]

Fact

[@CoinsInTheWild]

Haha...that’s gonna be some sweet action... 💰

[@jaysoegaard]

Wow thank u

[@patrickkerner1471]

Buy Gold cause a day of weakening is Coming! Most overvalued market since 2008!

[@mr.houston6892]

I stop listening to this guy after Jon Stewart took his manhood on national television.

[@Matt90541]

Jon Stewart attempted to steal what he doesn't have.

[@flickthebean2124]

Yet here you are.

[@anbesaw6409]

haha

[@brandonreed09]

The greater fool.

[@qkingoftears]

😂😂😂😂

[@luckyinvestor1036]

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[@ncpriscilla4081]

Considering the huge profits generated, 20% commission seems very fair.

[@luckyinvestor1036]

@@adrianreynolds341 I got his contact from a colleague, you have it [[e-mail]]

[@JeepComeTrue]

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