AMTD Digital and 4 Other Stocks Redditors are Buying in August

4. Revlon, Inc. (NYSE:REV)

Number of Hedge Fund Holders: 36

Revlon, Inc. (NYSE:REV) is a New York-based company that manufactures and sells beauty and personal care products worldwide. Revlon, Inc. (NYSE:REV) acquired “meme stock” status in the last few months. Although the company is rumored to be bankrupt, Reddit investors see it as the next Hertz, which filed for bankruptcy in May 2020 and those who bet on the stock ended up making significant profits when the company was acquired for $6 billion in 2021. Although Revlon, Inc. (NYSE:REV) is widely shorted, the stock soared on August 1 after the court allowed it to borrow money for continued operations under Chapter 11 protections. The company was granted a $1.4 billion loan and consequently gained over 100% on August 1 in intraday trading. 

Among the hedge funds tracked by Insider Monkey, James Thomas Berylson’s Berylson Capital Partners is the leading stakeholder of Revlon, Inc. (NYSE:REV) as of Q1 2022, with 113,541 shares worth $916,000. Overall, 36 hedge funds were bullish on the stock at the end of the first quarter of 2022, up from 31 funds in the earlier quarter. 

Here is what Mittleman Global Value Equity Fund has to say about Revlon, Inc. (NYSE:REV) in its Q1 2022 investor letter:

“For Revlon, given very recent reports by analysts on the extent to which a slowdown in China, higher input costs, and rising interest rates might impact it, MIM provides additional commentary herewith to supplement the update in WWOAW. Revlon’s business is rebounding from the pandemic, despite its stock price continued insistence to the contrary. Sales were +9% in 2021 to $2.08B, adjusted EBITDA +22% to $293M (14.1% EBITDA) margin, gross margin improved to 59.4% from 57.1%. MIM sees the sales rebound accelerating in 2022, estimating +15% to $2.4B (the 2019 pre-pandemic level), and EBITDA at $350M (14.5% EBITDA margin) vs. 12-year average adjusted EBITDA margin of 16.5% (2008-2019) before COVID crushed 2020. The Revlon brand itself performed much better in Q4 2021 (consumption at retail) than the wholesale numbers they reported (Revlon’s sales to its customers, hindered by supply chain disruption) would imply…” (Click here to see the full text)