(Morning News) U.S. cosmetics company Revlon, a 90 -year -old American cosmetics company, continues to face bankruptcy procedures, its stock price has soared overnight.%.
Luouvon's stock price finally closed at $ 5.42 at the end overnight, with a total of 0.83 US dollars or 18.08 % of the day. There were 33.6682 shares in the audience, which was twice the average transaction volume, which was quite active.
Louvano applied for bankruptcy protection in Chapter 11 in mid -June.Although the stock price this week has lowered the market on the first trading day, since June 13, the stock has risen by nearly 400 %.After JCPenney applied for bankruptcy, he suddenly scrambled to buy it.
Not only that, but the "fans" of Meme Stocks on the WallStreetbets forum of social platform Reddits have also begun to pursue Louvonan stocks.According to Lianhe Morning Post search, Quiver Quantitative statistics from 11 pm on Thursday (June 30), Louvon has increased by 137.50 % in WallStreetbets in the social media Reddit Investment Forum in the past seven days.
Maybe investors will feel that the opportunity to buy the old brand of Louvison at ultra -low price is rare for thousands of years, but the stocks of buying bankruptcy companies should actually be cautious.After all, a company applies for bankruptcy when the debt becomes unable to bear it.
According to Louvon's latest quarterly performance report, Louvon's debt is amazing $ 3.3 billion.But why does the company applying for bankruptcy have a so -called "bankruptcy rebound"?
"Bankruptcy Bounce" or investor optimism
The most important factor is the optimistic emotions of investors.Behind the "bankruptcy rebound" is usually a group of investors firmly believe that companies with debt can come out of the bankruptcy dilemma.As far as Louvon is concerned, the market has been rumored to have been rumored to have been considering acquiring the cosmetics giant, which is one of the main reasons for the stock price of the stock price.
Followed by the temptation of short -term transactions.Usually, when the stock price plummets to the low point that investors have never seen, the stock price often rises temporarily.This phenomenon is called "Dead Cat Boundce" by market sources.This rebound is usually related to traders and other speculators, which has pushed the stock price related to low -suction.This rebound has nothing to do with the basic factors of the company's business.
In addition, these stocks that are sought after by the "fans" of the stocks are also likely to become the goal of Short-Squeeze.According to the latest information on the online online at 11 o'clock last night, 64 % of the free circulation volume was sold short.Such a high -selling percentage will inevitably make people think that the stock price of the game station (GameStop) in early 2021 is soaring due to short squeezing.
Having said that, investors must know that after applying for bankruptcy, a company usually does not meet the listing requirements of the main stock exchange.Therefore, the possibility of delisting is very high.Although the Louvison shares are still traded on the New York Stock Exchange, the New York Stock Exchange has begun to start the stock delisting procedure on the New York Stock Exchange.
The bankruptcy company usually transferred to the off -site trading market (OTC) after delisting, because the financial disclosure requirements of these markets are relatively loose, but the traffic volume of the overseas trading market is low.It cannot be compared with major securities exchanges.
If the real bankruptcy is true? Shareholders may not be paid
and investors must also understand that if Louvon is really bankrupt, the company will compensate the creditor first.As a shareholder, it is the last batch of compensation.When it is the turn of the shareholders, there is nothing to divide.
But the "death penalty" completely sentenced at this moment is not completely correct.An example that everyone may be familiar with is the former model Hertz Global, a stock car rental company.After declaration of bankruptcy, it came back again.The stock price is now at the level of $ 16.
Maybe he will return to life like Hertz?
Hertz at the time was due to the crown disease, which caused the business to stagnate and applied for bankruptcy.However, 13 months later, with the rapid recovery of car rental and the rapid recovery of the United States, Herz got rid of the dilemma of bankruptcy and resumed.Will Luouvon die back like Hertz?
Among the analysts of Tipranks, only one analyst gives Luhuo Nong stock evaluation, and the rating is only "held". The average target price of the one -year period is $ 8.50.Although the target price seems to have potential, this is just an analyst's view after all, there is no representativeness.Therefore, if investors want to buy Louvon, they should be prepared for psychological preparations. After all, the risk of this stock at this moment is by no means average, and it is very likely to invest in Wuwu.
