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Robinhood Users Crushed In Another Bankruptcy, Restaurant Traffic Plummets, 2 Million Could Close

Published on Sun, Jun 28th 2020 People & Blogs Rectangular HD

Robinhood users have been pouring into energy companies despite the rising default risks that are present as a result of the 2020 recession. The rush into energy stocks has been particularly enthusiastic in the past month with many anticipating we on on the verge of a massive hidden V-shaped recovery and this is their chance to get into the stock market at "cheap" prices. The performance of stocks has been nothing less than extraordinary since the collapse began in February and many of the new retail investors have just begun investing for the first time. Yet another company, Hi-Crush (HCR), a fracker with shale plays in Texas, the Midwest, and interior Northeast, is working on the terms for a prearranged bankruptcy filing with lenders HCR is expected to file for bankruptcy imminently with already signed forbearance agreements, lenders will not exercise default-related rights on the company until July 5. Shares of HCR plunged 29% in pre-market Friday after the news of imminent bankruptcy.
Restaurant traffic suddenly plunged, sliding from a -66.5% y/y decline as of June 13 to -78.8% globally. The plunge was mostly due to a sharp drop in U.S. restaurant diners, which plunged by 13% - from -65% to -78% - the biggest one day drop since the start of the shutdown in the U.S., and the second biggest one day drop on record. consulting firm Aaron Allen & Associates also commented by saying "Based on our estimates, we believe up to 10% of all restaurants globally will disappear, with 20% or more also going through a restructuring process," said founder Aaron Allen. "This is a conservative case, in our view." Of the roughly 22 million restaurants worldwide, about 2.2 million are expected to shutter operations. Global restaurant traffic data via OpenTable shows little improvement in late June. Retail has also been hit hard as a result of the recession and H&M reported their first quarterly loss in decades which is significant since they are the world's 2nd largest clothing retailer. This is shaping up to be a terrible earnings season.