KODK stock price: Eastman Kodak Company may extend gains on coronavirus promise, after relief rally
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CLAIM OFFER- NYSE: KODK has consolidated its gains after a probe reportedly found no misconduct.
- Government funds to promote coronavirus-related products may boost the stock.
- A relatively low valuation may also provide room for gains.
Is it a Kodak moment for investors? Those old enough to remember the glory days of the Eastman Kodak Company (NYSE: KODK) and everybody else, may brace for gains. The veteran of analog photography succumbed to the emergence of digital cameras and later smartphone cameras but has reemerged in the medical field.
Kodak's shares leaped in the summer when the US government awarded it a loan of $765 million for making materials needed for COVID-19 drugs. Anything related to curing the disease that grips the world received investors' attention.
However, KODK tumbled after it was revealed that the firm was under investigation by the International Development Finance Corp for misconduct. The former film firm rose once again from the ashes after the Wall Street Journal reported that the probe found no misconduct.
Where next for the firm?
Kodak stock price
Covid is far from being resolved, as yet another day with more than 3,000 US deaths reminds investors. With the federal loan now back in play, Kodak may have more room to rise while id deploys the funds toward sales of these materials.
Another positive factor for the stock is that despite its recent bounce, market capitalization remains a minuscule $771 million. That comes against total revenue of $1.242 billion in 2019. It is enough to compare the valuation of the firm to the government grant to see that – if the government aid is successfully deployed – there is an upside for the stock.
After closing at $10 on Thursday, NYSE: KODK still trades below the weekly peak of $12.04 and under the August high above $16. Reaching the late July close of $33.20 or the 52-week high of $60 seems like a tall order at this point. Support awaits at $7.53, the pre-relief-rally high.
- NYSE: KODK has consolidated its gains after a probe reportedly found no misconduct.
- Government funds to promote coronavirus-related products may boost the stock.
- A relatively low valuation may also provide room for gains.
Is it a Kodak moment for investors? Those old enough to remember the glory days of the Eastman Kodak Company (NYSE: KODK) and everybody else, may brace for gains. The veteran of analog photography succumbed to the emergence of digital cameras and later smartphone cameras but has reemerged in the medical field.
Kodak's shares leaped in the summer when the US government awarded it a loan of $765 million for making materials needed for COVID-19 drugs. Anything related to curing the disease that grips the world received investors' attention.
However, KODK tumbled after it was revealed that the firm was under investigation by the International Development Finance Corp for misconduct. The former film firm rose once again from the ashes after the Wall Street Journal reported that the probe found no misconduct.
Where next for the firm?
Kodak stock price
Covid is far from being resolved, as yet another day with more than 3,000 US deaths reminds investors. With the federal loan now back in play, Kodak may have more room to rise while id deploys the funds toward sales of these materials.
Another positive factor for the stock is that despite its recent bounce, market capitalization remains a minuscule $771 million. That comes against total revenue of $1.242 billion in 2019. It is enough to compare the valuation of the firm to the government grant to see that – if the government aid is successfully deployed – there is an upside for the stock.
After closing at $10 on Thursday, NYSE: KODK still trades below the weekly peak of $12.04 and under the August high above $16. Reaching the late July close of $33.20 or the 52-week high of $60 seems like a tall order at this point. Support awaits at $7.53, the pre-relief-rally high.
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