Eastman Kodak stock surged today more than 300%
July 29, 2020
Eastman Kodak Company (KODK) stock
Shares of Eastman Kodak Company (KODK) closed today with gains of more than 300% at 33.20+25.26 (+318.14%). Why these gains for Eastman Kodak Company (KODK) stock?
Eastman Kodak Company (KODK) stock news
“(Bloomberg Opinion) — Kodak, the once-iconic photo company that’s been languishing for years, surprised the world this week by announcing a pivot into the pharmaceuticals business with a $765 million head start from the U.S. government. Somehow, that was enough to send the stock soaring more than 1,000% and add more than $1 billion to the company’s market value. Really? Let’s discuss.
The Defense Production Act loan, announced Tuesday, is part of a Trump administration effort to bring the manufacture of drug ingredients back to U.S. shores to reduce dependence on other countries and ensure consistent supply. It’s a reasonable if challenging policy goal. The loan and new business line for Eastman Kodak Co. isn’t, however, anything close to a justification for its massive share-price gains — whatever day traders and Robinhood investors may say.
Kodak is attempting to enter a low-margin commodity market with no particular advantage outside of the current administration’s industrial policy. Unless the government money spigot keeps flowing, it’s hard to imagine the company ever living up to its lofty valuation.”
Eastman Kodak Company (KODK) stock chart
Stock market source: Stockscharts
Is it Kodak craziness, irrational exuberance, stock chasing, FOMO? Stocks go up but attention as they can go down as quickly as their meteoric rise. Investing in stocks is too risky when driven by speculation.