NEW YORK (TheStreet) -- Shares of Avon Products (AVP) are down by 0.28% to $7.05 in late morning trading on Friday, one day after a mysterious buyout offer sent the beauty products manufacturer and seller's stock soaring.
The offer would ultimately be identified as a hoax, with serious questions raised as to how the so called PTG Capital Partners, which was believed to be a British investment firm, was able to submit the regulatory filing to the SEC. PTG Capital's offer of $18.75 per share was about three times Avon's value.
In the 25 minutes after the takeover filing was released around $91 million worth of Avon Products' stock had exchanged hands, Bloomberg calculated.
The stock's rally started to ease up after reports that the firm and the Texas-based lawyer listed in the filing do not exist. Avon itself released a statement saying it has received no buyout offer and could not confirm the existence of PTG.
The question of who is behind the fake filing still remains. The SEC is reviewing the filing, the Wall Street Journal reported.
Separately, TheStreet Ratings team rates AVON PRODUCTS as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate AVON PRODUCTS (AVP) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself."