not really Contact at Ubiquiti Networks?

John Levine johnl at
Wed May 27 22:32:11 UTC 2020

In article <CAAeewD-OkTmGp5-tMRXChkh9Y2+NFkWKDYJjMyT0uwfP2_40Rg at> you write:
>On Wed, 27 May 2020 at 10:00, Mel Beckman <mel at> wrote:
>Hertz car rental has the #1 product in its industry, even its major
>> competitor Avis agrees (“We’re number two“:-), and yet Hertz stock is
>> plunging towards zero even as we speak. ...

>However Hertz depreciation is caused by the anticipation that debtors will
>receive almost all of the equity, diluting the current owners by massive
>ratio. ...

Hertz suffers from an over-clever structure in which they lease their
cars from special purpose funds owned by private investors. Since
there is currently no demand for airport car rental, nor any demand
for used cars, the value of the cars has dropped, and Hertz got what
was in effect a margin call. But since there is no demand for airport
car rental nor used cars, Hertz has no revenue with which to pay the
margin calls. Uh, oh, repo time.

This doesn't tell us much beyond the fact that if you are in a
business in which an unforseen event destroys both your income stream
and the value of your major asset, you are in trouble. As far as I
know neither applies to makers of routers and other Internet hardware.

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