Why Revlon Stock Jumped 13% This Week
Volatility worked in Revlon (NYSE: REV) investors' favor this week, as the makeup company's stock rose 13% through Thursday trading, compared to a 2% spike in the S&P 500, according to data provided by S&P Global Market Intelligence. That rally only erased a small part of recent losses, though, and the stock remains lower by nearly 50% so far this year.
Revlon, which is going through a bankruptcy reorganization, is making progress refinancing its debt, although its long-term earnings prospects are still far from clear.
Revlon's bankruptcy filing sparked new interest in the stock from investors looking to potentially profit from a quick price spike. That speculation was amplified by news suggesting that the company might be a buyout candidate. Volatility around these short-term bets drove the stock higher at times recently, far lower last week, and up again this week.
Source Fool.com
