What’s up with Kodak?

Its stock price is up, for starters. Shares in the photography pioneer have soared in recent days, following the news that it won a federal loan on Tuesday to produce ingredients for coronavirus treatments.

The timing of the trading has aroused suspicion. Some have cried foul, pointing to heavy trading volumes ahead of the official announcement about the government loan. The Wall Street Journal reports that there is an explanation: Kodak had briefed news outlets in its hometown, Rochester, N.Y., but neglected to say that the information was not for public reporting at the time. Some of those tweets and stories were deleted shortly after posting, but not before eagle-eyed traders saw the news.

Momentum begets momentum, and perhaps unsurprisingly, Kodak shares have become a favorite of speculative day traders on the Robinhood app, where nearly 79,000 users added the stock to their portfolios in just 24 hours. Kodak’s stock is now trading 17 times higher than it was at the end of last week, representing a potential second act for a company that was struggling to find a new direction.

Source: https://www.nytimes.com/2020/07/30/business/whats-up-with-kodak.html


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