Revlon, Xpeng, Kellogg, Altria, Blue Hat Interactive: Weekly Digest (20 – 24 June)
This week, we are researching such companies as Revlon, Xpeng, Kellog, Altria, and Blue Hat Interactive. We will tell you in short what happened to them and how their securities reacted.
Revlon voluntary bankruptcy: shares continue soaring
Last week, American cosmetic giant, Revlon Inc., filed for Chapter 11 bankruptcy. During the COVID-19 pandemic, issues with the supply of perfume and cosmetic ingredients resulted in these ingredients becoming noticeably more expensive. Consequently, suppliers had to require advance payments. The shortage of workforce and inflation made the situation at Revlon even worse.
Almost immediately after the company announced bankruptcy, its shares attracted the attention of individual investors, becoming meme stock. On Tuesday 21 June, the stock quotes of Revlon Inc. (NYSE: REV) jumped 62.47% to $6.06, and on Wednesday they rose 34.72% more, to $8.14. On Thursday, the trading session closed with a correction of 11.55% to $7.2.
Xpeng shares are growing following the good news
On Tuesday, Chinese electric car maker Xpeng reported that since December 2018, when serial production of these cars began, the total supply volume has reached 200,000 vehicles. As you remember, the company surpassed a supply volume of 100,000 vehicles in October last year.
On the same day, it was heard that stock market analysts from Citigroup lifted the target price of Xpeng Inc. (NYSE: XPEV) from $36.7 to $51.59 with a recommendation to buy.
Xpeng shares reacted to the news by growth: during three consecutive trading sessions (Tuesday to Thursday), the shares recorded a total growth of 17% to $32.97.
The Kellogg Company will be split into three independent public companies
On 21 June, the American maker of cereals and package meals, The Kellogg Company, issued a press release about the plans to split its business into three independent public companies. The goal of the decision is to make the business more efficient and promising.
The first new company will deal with the international production and sales of snacks, cereals, instant noodles, etc.
The second one will develop the business in the US, Canada, and the Caribbean. The third one will make and distribute products suitable for vegans and vegetarians. The main brand will be MorningStar Farms, under which vegan products are made.
On Tuesday, this information made the shares of the Kellogg Company (NYSE: K) jump 1.95% to $68.86. After a decline of 1.37% to $67.92 on Wednesday, the shares grew 2.06% to $69.32 on Thursday.
Altria Group: Juul products might be banned in the US
On Wednesday 22 June, the Wall Street Journal announced that the US Food and Drug Administration (FDA) might ban Juul's electronic cigarettes and make the company remove its products from the market.
For the last couple of years, the FDA has been studying the effect electronic cigarettes in the US market have on human health. In September last year, the regulator postponed the decision about licensing Juul.
On 22 June, the shares of one of the leaders of the global tobacco market, Altria Group (NYSE: NO), which holds 35% of Juul Labs shares, dropped 9.19% to $41.5. At the close of the trading session on the following day, the stock quotes managed to recover by 2.43% to $42.51.
Blue Hat Interactive shares skyrocketed 263%
On Wednesday, Chinese Blue Hat Interactive Entertainment reported that it would not carry out the previously announced guaranteed public placement of its ordinary shares and preliminary financed warrants.
As you remember, Blue Hat Interactive Entertainment designs, produces, and sells interactive games with augmented reality, toys, and learning materials.
On Thursday, this news made the stock quotes of Blue Hat Interactive Entertainment (NASDAQ: BHAT) skyrocket 263.03% to $2.73. This is the highest intraday growth of the shares in the company's history.
The filing for voluntary bankruptcy sent Revlon's stock skyrocketing 118% from Tuesday to Wednesday, making them become meme securities.
The supply of the Chinese car maker Xpeng has reached the level of 200,000 electric cars, and its stock quotes recorded a 17% growth from Tuesday to Thursday.
Kellogg is planning cardinal restructuring: the business will be split into three sections, and each of them will be taken up by a new company. The shares reacted with moderate growth of 2%.
The shares of Altria Group, which owns a third of Juul Labs shares, lost 9% after the FDA announced that it might ban Juul electronic cigarettes in the US.
Blue Hat Interactive Entertainment shares skyrocketed 263% after the company announced that it was not to carry out the guaranteed public placement of its ordinary shares.