Short Revlon? via /r/wallstreetbets #stocks #wallstreetbets #investing

Short Revlon?

So Revlon fucking doubled today then settled down to a measly gain of 46%…

Why did a cosmetic brand that's worth 320m (before today) with 3.5b of debt double?

Because they're trying to exchange some 2021 senior notes that come due for a mixture of cash and new notes. Effectively buying their debt out for .32-.50 cents on the dollar.

That would mean a company that has been consistently losing money for 5 years would have a better footing. If this fails, they're going into bankruptcy and the stock will be worthless (looking at your HTZ).

They have until November, 16th to strike a deal….

Makes me wonder if this is worth shorting? 11/20 puts are cheap (.40 premiums) which could effectively print to the moon if this fails.


Submitted November 11, 2020 at 08:01AM by Dr_THC
via reddit