Bankrupt Revlon's Surge Draws Retail Investors as Trading Booms




  • In Business
  • 2022-06-21 20:50:55Z
  • By Bloomberg

(Bloomberg) -- Retail investors dashed into Revlon Inc. again on Tuesday as a stronger appetite for risky assets led to a more than 30-fold jump in trading for the bankrupt cosmetics giant.

Most Read from Bloomberg

  • Switzerland Imports Russian Gold for First Time Since War

  • Stocks Surge After $2 Trillion Wipeout; Bonds Fall: Markets Wrap

  • US Futures Gain With European Stocks; Dollar Slips: Markets Wrap

  • Liz Cheney Is Paying the Price in Her Home State for Crossing Trump

  • Elon Musk Sounds Off on Recession Risk, Twitter Deal and Trump

Revlon, which filed for court protection on June 15, rose 62% in New York, with over 183 million shares traded. That's more than 31 times the average volume over the past three months. Since the company tumbled to an all-time low on June 13, the stock has surged 461% as roughly 538 million shares changed hands.

Retail traders were behind a portion of those gains, amid a 2.5% advance on the S&P 500 Index. In a maneuver reminiscent of other bets in low-priced, debt-laden companies, such as Hertz Global Holdings Inc. and AMC Entertainment Holdings Inc., individual investors are turning their attention to the stock in hopes of a quick profit while ignoring fundamentals.

Common stockholders have some of the weakest claims on a company's assets in bankruptcy court, standing in line behind lenders, bondholders and other creditors who typically must be fully repaid before shareholders get anything. The proceedings often leave the shares worthless.

Revlon was among the 10 most-traded assets on Fidelity's platform Tuesday, with buy orders nearly matching sells. The stock has attracted roughly $10 million in retail trader cash over the past week, with nearly $6 million pushed into the company on Friday alone, according to Vanda Research data.

On Friday, Revlon got the approval of a US bankruptcy judge to tap $375 million of new financing on an interim basis. The company will seek permission to borrow more money at a later hearing.

(Updates share movement, volume throughout)

Most Read from Bloomberg Businessweek

  • Ethereum Mining Is Going Away, and Miners Are Not Happy

  • Emmanuel Macron Wants to Pay Workers a Dividend

  • Adults Who Love Toys? The Toy Industry Loves Them, Too

  • Hell Is a Cruise Ship at the Beginning of the Pandemic

©2022 Bloomberg L.P.

COMMENTS

More Related News

Germany Risks a Cascade of Utility Failures, Economy Chief Says
Germany Risks a Cascade of Utility Failures, Economy Chief Says

(Bloomberg) -- Germany should prepare for deeper cuts in Russian gas supplies because President Vladimir Putin is pursuing a conscious strategy of driving up...

July 4th Travelers Face Canceled Flights, Crowded Airports and Higher Fares
July 4th Travelers Face Canceled Flights, Crowded Airports and Higher Fares

(Bloomberg) -- People across the US are expected to fly in the highest numbers since the start of the Covid-19 pandemic for the July 4 holiday weekend...

What Kind Of Investors Own Most Of Enviva Inc. (NYSE:EVA)?
What Kind Of Investors Own Most Of Enviva Inc. (NYSE:EVA)?

The big shareholder groups in Enviva Inc. ( NYSE:EVA ) have power over the company. Institutions often own shares in...

The Worst Stock Selloff In Half a Century Might Not Be Done Yet
The Worst Stock Selloff In Half a Century Might Not Be Done Yet

(Bloomberg) -- It's been a chaotic, and costly, time for many investors. But 2022 is only half over and the stocks tale will probably have more twists and...

Charting the Global Economy: Factories Slow Down From US to Asia
Charting the Global Economy: Factories Slow Down From US to Asia

(Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.Most Read from BloombergJPMorgan Sees...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

  • PSYCHEDELIC HAVENS
    (2022-06-22 01:41:57Z)

    Psychedelic Havens brings you state-of-the-art industry-standard Psilocybin products and Research Chemicals to meet diverse needs. Our catalog is extensive and comprises carefully selected products that meet quality standards. We provide Psychedelic Products and also Research Chemicals for sale worldwide with discreet shipping
    Psychedelic Havens is a safe secure and discrete place where you can buy Psychedelics Like LSD, DMT, MDMA, and MUSHROOMS safely online and hassle-free.

    psilocybe cubensis for sale
    buy albino penis envy mushroom
    golden teacher mushrooms for sale
    liberty caps for sale
    penis envy mushroom spores
    one up mushroom chocolate bar where to buy
    shroom chocolate bar
    psychedelic mushroom chocolate bars for sale
    buy lsd online
    lsd
    mushroom capsules
    buy amped bath salts
    buy bliss bath salts
    buy fine china bath salts
    buy crystal meth
    magic truffles for sale
    buy crystal meth
    buy ecstacy
    what is mdma
    buy mdma
    dmt powder for sale

    REPLY

Top News: Business