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The cosmetic giant, which filed for bankruptcy on June 15 after amassing large amounts of debt, rose nearly 30% in New York, with over 44 million shares being traded — more than seven-times the average seen over the past three months. Since the company tumbled to an all-time low on June 13, the stock has powered a 310% surge as more than 400 million shares were traded.
Retail traders are behind a portion of those gains. Taking advantage of a 2.5% advance on the S&P 500 Index and in a maneuver reminiscent of other bets in low priced, debt-ladden companies, such as Hertz Global Holdings (OTC:HTZGQ) Inc. and AMC Entertainment (NYSE:AMC) Holdings, individual investors are turning their attention to the stock in hopes of a quick profit.
Revlon was among the 15 most traded assets on Fidelity’s platform Tuesday, with buy orders modestly overpowering 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 (NASDAQ:VNDA) 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.
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