June 29, 2022

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sitting pretty? Revlon stock rises after bankruptcy filing

sitting pretty?  Revlon stock rises after bankruptcy filing
shares Revlon (REV) Nearly 35% on Wednesday afternoon in choppy trading. The stock is now up more than 300% in just the past three sessions — from about $2 to about $8 — after dropping 13% on the day the company announced its Chapter 11 realignment plan. (Talk about putting lipstick on a pig.. .)
Revlon’s stock increase is eerily reminiscent of what happened with the car rental company hertz (HTZ) In the year 2020 beyond filed for bankruptcy. Stocks initially rose thanks to positive signals from traders on Reddit, who were betting against short sellers who believed that Hertz stock would continue to drop further.
When a company declares bankruptcy, most investors You usually don’t get anything of the ensuing reorganization. Bondholders and other creditors often come first To get some of their money back, but the stockholders usually have their investment erased Once issued new shares after bankruptcy.
Which makes the increase in Revlon even more exotic. Some of the stickers on Reddit are popular WallStreetBets panel They were even speculating about how much Revlon’s shares would rise.

One Reddit user named pikatruuu (something resembling a yellow Pokemon character) noted the comparison to Hertz, saying that the car rental giant’s stock rose eightfold during the bankruptcy process.

“Revlon is currently the 11th best selling stock short…it’s a very special brand. Is there a chance it could become a stock meme?” pikatruuu wrote. Then again, Picatro also noted that what happened with Hertz was “a rare event, of course.”

That hasn’t stopped some very enthusiastic users from pumping out the stock’s prospects.

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Wonderwoman009 asked, “Is Revlon the Gamestop for 2022?”

“No idea. But the party is happening now,” Picardrault responded, adding, “If that’s the case [subreddit] You can jump on the train, I don’t understand why it doesn’t exceed $10. “

Others were more optimistic, expressing their love for the stock through posts in ALL CAPS.

“REVLON TO THE MOON is trending at $12,” said a user named One-Relationship-143.

But there seems to be at least one voice of reason discussing Revlon on Reddit.

Electronic-Ad6420 wrote: “If you have money you are going to burn for something, then yes, you should buy some.”