Revlon Declared Bankruptcy. Why Is Its Stock Soaring?

A funny thing happened on the way to Revlon’s bankruptcy. 

By all accounts, it should have been lights out for Revlon  (REV) – Get Revlon Inc. Report. On June 16, the cosmetics company filed for voluntary bankruptcy after collapsing under a $3.3 billon debt load.

When the news was announced, Revlon shares were at $1.95.

But in the days that followed the Chapter 11 declaration, something unexpected started to happen as investors started buying up company shares. 

On June 17, shares reached $8.14. Thety have remained near $7 in the days since. Analysts at Vanda research calculated that retail traders purchased up to $8.3 million in stock on Tuesday, June 21 alone, Reuters reported.