The recent downturn in the market has created incredible opportunities. Smallcap stocks that were trading for more than $15 a share are now headed toward sub-dollar territory. Of course some of these companies have incredible amounts of debt with little cash in the bank and a bleak future, but there are those who have also seen their stock price hammered even though they have good liquidity and maintain steady profits. Those who will gain the most from the market’s inevitable rebound will be investors who carefully chose companies that are able to weather the storm without getting bruised or broken.
Headquartered in Tulsa, Oklahoma, Dollar Thrifty Automotive Group is a Fortune 1000 Company with a mission to deliver value every time. Their two brands, Dollar Rent A Car and Thrifty Car Rental, serve value-conscious travelers in approximately 70 countries. To date, they have more than 800 corporate and franchised locations in the United States and Canada. Though 8,500 employees are located in North America, the company has a global reach through their expanding international franchise network.
Earlier this week the company announced that it anticipates closing the third quarter with a profit and an unrestricted cash balance of more than $200 million, which is up $120 million from June 30, 2008’s cash balance of only $80 million. Dollar Thrifty also told investors that as of the most recent reporting date, it has remained in compliance with all of its financial covenants under its various financing arrangements.
President and CEO Scott L. Thompson expressed his acknowledgement of the importance of maintaining a solid cash position by stating, “With today’s unprecedented challenges in the economy, maintaining sufficient liquidity and unrestricted cash are important factors to help companies weather this cycle. Although, we expect overall economic challenges may exacerbate the seasonal downturn in rental operations this year, we remain focused on executing against our plans and managing liquidity.”
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