Eastman Kodak has seen an upsurge, very recently, and it appears to be absolutely cinematic. Stock market analysts and investors seem to consider this upswing of KODK stock prices as a glorious rise from the ashes moment for this rapidly declining company.
This increase in KODK stock prices offers a great story of a successful comeback. Everyone enjoys a dramatic event of a fallen hero who makes a striking return to the world hub after fighting innumerable odds, trials, and tribulations. However, the comeback tales include a little touch of reality.
For this very reason. KODK stock appears to me as extremely unrealistic as well as irrational.
Suppose you are watching a very bad film and you do not completely understand the motivations and intentions of the main characters, then you will automatically lose your interest in the movie. So, investors must be very cautious of KODK stock since they are very unpredictable and unreliable at the moment.
Matt McCall, one of the smartest and profit-making investors in the stock market at present has remarked that the very last time, Eastman Kodak company was a relevant, reliable, and profitable enterprise as in the year 1995. Nonetheless, this is 2020 and no longer 1995 and it is very unrealistic for analysts and investors to be keeping any hopes from this company at all.
The US government made the announcement that they will be rolling out loans for the purpose of generating pharmaceutical components in this dire situation of coronavirus pandemic. This is likely to finance business enterprises for helping the economy to recover from the pandemic lockdown. As a result, KODK stock prices saw an increase and overtook the price of $30 for a brief period of time.
Nonetheless, on 8th August, the US government agency which made the declaration of giving out loans and financial aid for pharmaceutical productions tweeted that they will no longer be able to fulfill that promise. Hence, all hopes for a KODK stock upsurge were quickly discarded and the company kept spiraling downhill on the stock market.
Unprofitable KODK Stocks
At the beginning of 2020, KODK was made a promise by the White House that they will be receiving an amount of $765 million as a loan which falls within the category of Defense Production Act. The announcement further added that this loan is intended to help KODK to transform into a pharmaceutical enterprise which will be able to help the United States in producing several essential medicines.
However, it was later revealed that Kodak had purchased extra shares right before the announcement of the loan from the White House was made. As a result, Elizabeth Warren, the senator, publicly accused Kodak of insider trading.
Consequently, these political show-offs did little to help KODK Stock from saving themselves from this huge downfall which seems to be their ultimate end.
The bottom line is, that KODK stock investors must discard their shares as soon as possible.
