Robinhood traders are piling into Hertz, JCPenney, and other bankruptcy stocks despite the massive risks

Robinhood traders are betting on bankrupt companies including Hertz and JCPenney, even though shareholders tend to be losers in the bankruptcy process. Hertz, JCPenney, and Whiting Petroleum shares all rose more than 95% on Monday, while Chesapeake Energy and GNC, which are close to filing for bankruptcy, rose 182% and 106%. “I don’t think I’d have ever guessed before that *bankruptcy* itself would be an exciting investment theme,” Bloomberg editor Joe Weisenthal tweeted. Billionaire investor Carl Icahn ditched his 39% stake in Hertz at a huge loss in May after the car-rental giant filed for bankruptcy. Visit Business

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