Revlon extends its height to 650% of the bottom as measured by retailers

Traders piled into shares of Revlon Inc. , which enhanced earnings From an all-time low to 650% as retail investors sought a quick buck, while ignoring the fundamentals of the troubled cosmetics giant.

Shares jumped 34% on Wednesday, posting gains from a record low to more than 650% as volume continues to rise beyond recent trends. Over 119 million shares of Revlon stock have traded on average each day since the bottom was hit, about 665 times the average daily volume last year before it boomed.

Data from Vanda Research showed that retailers have been helping boost profits, raising nearly $18 million over the past week. The move is reminiscent of other bets on low-priced, debt-laden companies such as Hertz Global Holdings Inc. Investors rushed to trade Revlon shares after the company filed for legal protection on June 15.

Ordinary shareholders have some of the weakest claims on company assets in bankruptcy court, queuing behind lenders, bondholders and other creditors who usually have to be paid in full before shareholders get anything. Actions often render stocks worthless.

But Hertz has already attracted retail investors Wall Street Both years ago when dealers pushed for a tenfold refund after the auto financier filed for Chapter 11 bankruptcy. The big rally allowed the beleaguered company to raise fresh money, and Redditors were validated after a winning attempt to get Hertz out of bankruptcy. About $8 a share for stock holders.

Revlon’s following among retailers armed with commission-free apps has accelerated in recent days, with the benchmark heading into the popular Stocktwits chat room and ranking among the most cited companies on Reddit’s WallStreetBets forum along with GameStop Corp. Revlon was the second most-purchased asset on the Fidelity platform in the Wednesday session, behind Tesla Inc. Just

Revlon’s call options to trade above $10, a level it hasn’t closed above since February, saw a sharp rise in interest and was the most traded derivative associated with the company in the session. The stock finished the day at $8.14, its best close since early April.