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FreightCar America and FuelCell Energy among industrial gainers; R. R. Donnelley & Sons leads the losers
Gainers: FreightCar America (RAIL) +43%. Ideal Power (IPWR) +16%. CBAK Energy Technology (CBAT) +14%. DIRTT Environmental Solutions (DRTT) +11%. FuelCell Energy (FCEL) +9%.Losers: R. R. Donnelley & Sons (RRD) -20%. DPW Holdings (DPW) -8%.
Seekingalpha · 18h ago
Controversy Isn’t a Reason to Dump Kodak Stock
Some folks won’t be old enough to recall a time when Kodak (NYSE:KODK) was known for selling non-digital cameras. In 2020, the year of the novel coronavirus pandemic, the company is radically different, and traders think of Kodak stock as a “coronavirus stock.” Source: Katherine Welles / Shutterstock.com When a company has been entrenched in one business for generations and then transforms into a completely different type of company practically overnight, there’s bound to be some controversy. In the case of Kodak, the debates have gotten pretty heated sometimes. Some traders love Kodak stock while others dislike it intensely. As an informed, level-headed investor, you don’t have to take an extreme stance.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Rather, you can weigh both sides of the issue and make a reasonable decision as to whether you’d like to own Kodak stock today. Indeed, you might even choose to take a long-term position in this deeply transformed American icon of a company. The Rise of Kodak Stock Until July, Kodak stock really wasn’t very newsworthy. The share price mostly stayed between $2 and $3, week after week. Every time the bulls attempted to stage a breakout, they seemed to run out of steam. 7 Retail Stocks That Will Benefit From 2020’s Holiday Shopping Season The onset of coronavirus, and the need for affordable drugs, changed all of that. A surprising and unlikely turn of events took place as Kodak pivoted to a new business model. More specifically, the company would now manufacture ingredients for generic drugs. In the midst of the pandemic, Kodak submitted a letter of interest for a $765 million federal loan so that the company could manufacture generic-drug ingredients on a large scale. Amazingly, the Kodak stock price skyrocketed to exactly $60. At the time, there appeared to be bipartisan support for Kodak manufacturing pharmaceutical chemicals. For instance, New York Governor Andrew Cuomo said, “Never again do we want to rely on shipments from China or elsewhere in order to get lifesaving medical supplies.” Kodak Comes Under Scrutiny The controversy came soon afterward, though, and so did a decline in the Kodak stock price. Reportedly, the $765 million loan agreement was put on hold after Massachusetts Senator Elizabeth Warren raised allegations concerning “insider trading” and “unauthorized disclosure of material, nonpublic information.” Evidently, Kodak executives had received stock options a day prior to the White House’s announcement of the proposed federal loan. The next thing you know, traders were unceremoniously dumping Kodak stock. As a result, the Kodak share price fell to $6, and now in mid-November, the stock is trading between $6 and $7. Was such a sharp sell-off warranted, based on the allegations against Kodak’s executives? The Big Probe In order to verify the claims, litigators Akin Gump Strauss Hauer & Feld investigated the alleged illicit trading activity. This was a comprehensive probe involving “numerous documents, including over 60,000 electronic communications.” Moreover, there were “44 interviews of Kodak personnel, Board members, and a third party with relevant information.” In the final analysis, Akin and company concluded that Kodak was not in violation of insider-trading laws. Furthermore, Kodak Executive Chairman and CEO Jim Continenza appears to remain committed to his company’s new business model. “Looking forward, we’ll continue to build on our strengths in print and advanced materials & chemicals, including our existing business in manufacturing pharmaceutical ingredients,” Continenza recently asserted. All in all, Kodak appears to be fiscally able to move forward as a chemical manufacturer. At the third quarter’s end, the company reported consolidated revenues of $252 million along with a healthy cash balance of $193 million. The Takeaway Granted, there’s a speculative element to Kodak stock. No guarantee can be made that the share price will return to its 2020 high of $60. That being said, it’s entirely possible that $6 or $7 is too low a price for Kodak stock. The upside potential is there for Kodak shares if any piece of good news is released. Kodak stock currently has a “B” rating and a buy recommendation in my Portfolio Grader. On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article. Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.  More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets The post Controversy Isn’t a Reason to Dump Kodak Stock appeared first on InvestorPlace.
InvestorPlace · 11/13 21:49
Dump Kodak Stock Before It Plummets to $1.50 a Pop Once Again
The recent surge in Eastman Kodak (NYSE:KODK) is almost cinematic. People seem to imagine KODK stock rising from the depths to its former greatness through grit and determination alone. Source: Rizhka Nazar / Shutterstock.com Who doesn’t love a good comeback story, huh? Whether it’s Rocky or The Karate Kid, we have fond memories of cheering on as our favorite protagonist tries to mount a recovery against insurmountable odds. But the best comeback stories have a tinge of realism to them. That’s why KODK stock strikes me as unrealistic and unreasonable.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Like any bad movie, you don’t understand the characters’ motivations, and there is no story to latch onto. Plus, as ace investor Matt McCall puts it, it isn’t 1995–the last time the company was relevant. Shares reached a brief high of over $30 on the news that the U.S. government will extend a loan to produce pharmaceutical ingredients. Source: Chart courtesy of StockRover.com However, on August 8, the agency responsible for making the loan to Kodak tweeted that they would not proceed with the loan at this time. This came just one day after the company said it was investigating allegations of insider selling. But this article is not about that loan. Instead, it builds a case why Kodak has been an ailing company for a while and why a blip in stock performance should not entice retail investors to rush in at this time. Politics Backfired for KODK Stock There is a real danger in using political developments to play a stock because political support is subject to change. 7 Retail Stocks That Will Benefit From 2020’s Holiday Shopping Season Earlier this year, the White House announced Kodak would get a $765 million loan under the Defense Production Act intended to “transform Kodak into a pharmaceutical company that can help produce essential medicines in the United States.” That sent shares skyrocketing. But as I have already said, politics are dynamic. When it emerged Kodak board members had purchased additional shares before the loan announcement, the federal agency halted the loan. Sen. Elizabeth Warren was one of the first senators to comment on possible insider trading. Senior Democratic lawmakers soon chimed in, asking federal regulators to examine securities transactions made by the company and its executives when it learned it could receive government loans. Now that the Democrats have the White House, it seems further unlikely that Kodak will see that loan money. There was already skepticism of whether the company, having no history of pharmaceuticals, can transform itself in short order to help in the fight against the novel coronavirus pandemic. The legal issues add to the headaches. A Loan Is Not a Panacea for Weak Fundamentals Source: Chart courtesy of StockRover.com You can call me old fashioned, but I value fundamentals over anything else. Operating results over the last several years have raised some serious questions about the viability of this business. The company’s recent quarterly results required a going concern notice. Net loss would have been $32 million were it for the positive contribution from Pension Income. Taking everything into account, net loss came in at $5 million. But the recent quarterly results are not an anomaly. Rather they are part of a consistent trend of poor results. Several analysts are wondering whether the company will file for bankruptcy again. In 2012, Kodak filed for Chapter 11, announcing it would stop making digital cameras, pocket video cameras, and digital picture frames and focus on the corporate digital imaging market. Thereafter, the company began focusing on its major business segments; Print Systems, Enterprise Inkjet Systems, Micro 3D Printing and Packaging, Software and Solutions, and Consumer and Film. Still, the financial results didn’t improve, and operating metrics reflect this reality. However, with current assets and current liabilities standing at $579 million and $275 million, respectively, as of the last quarter, I don’t believe that the company is in danger of filing for Chapter 11 again. But the investigation surrounding the board of directors is a scandal waiting to happen. Legal expenses notwithstanding, the reputational damage is not something any investor in KODK stock will want exposure to. My Final Word on KODK Stock Writing about Kodak stock brings back a lot of memories. Its “Kodak moment” tagline is still iconic in my eyes, and there’s a lot of nostalgia when you speak on the company. But Kodak is more of a cautionary tale these days. Its work cut out to revive its financials, a tough task considering the economy’s general state post-Covid-19. The loan gave Kodak stock a brief shot in the arm. But it shouldn’t be seen as the answer to all its problems. And with the change of administration now taking place, I don’t think there are any chances of the company getting that lifeline soon. Bottom line, avoid Kodak stock now and for the foreseeable future. On the date of publication, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.  Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. He has several years of experience analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets The post Dump Kodak Stock Before It Plummets to $1.50 a Pop Once Again appeared first on InvestorPlace.
InvestorPlace · 11/13 12:39
Cramer's lightning round: Start a position in Salesforce
"Mad Money" host Jim Cramer rings the lightning round bell, which means he's giving his answers to callers' stock questions at rapid speed.
CNBC.com · 11/13 00:23
US Stock Market Overview – Stock Close Mixed Lead Higher by Technology
Kodak under scrutiny
FX Empire · 11/11 21:12
Eastman Kodak reports Q3 results
Eastman Kodak (KODK): Q3 Net loss of $445M.Revenue of $252M (-20.0% Y/Y)Cash balance of $193M at quarter-end.Operational EBITDA was negative $1M.Shares +3.5%.Press Release
Seekingalpha · 11/10 21:24
Eastman Kodak Co. to Host Earnings Call
NEW YORK, NY / ACCESSWIRE / November 10, 2020 / Eastman Kodak Co.
ACCESSWIRE · 11/10 20:15
Benzinga Pro's Top 5 Stocks To Watch For Friday, Nov. 6, 2020: TTCF, KODK, SNOW, PLTR, HGEN
Today's 5 Stock Ideas:  Tattooed Chef (TTCF) - A sympathy play on Beyond Meat (BYND), which will report earnings Monday after market close.  Eastman Kodak (KODK) - Shares are down about
Benzinga · 11/06 13:22
Five Stock Surprises After Election Day
The outcome of the presidential election is still unknown. But stocks are up anyway—a lot.
Barrons.com · 11/04 18:28
Kodak Trading Choppy as Loan Controversy Awaits Vote Result
Eastman Kodak share trading has been choppy. A loan the government agreed to grant to the chemicals company is the subject of controversy.
TheStreet.com · 11/04 15:40
Kodak shares gain as election stirs up optimism for federal loan probe
In August, the U.S. government paused a $765M loan awarded to Kodak (KODK) for switching its facilities over to making pharmaceutical ingredients that could help treat the coronavirus.The award was paused
Seekingalpha · 11/04 14:02
UBER, LYFT among premarket gainers
Digirad Corporation (DRAD) +25%.Lyft (LYFT) +17% as Proposition 22 expected to pass in California.Uber Technologies (UBER) +13% as Proposition 22 expected to pass in California.Lordstown Motors (RIDE) +9%.Eastman Kodak (KODK) +8%.Westwater Resources (WWR) +8%.Workhorse Group Inc. (WKHS) +7%.Weidai (WEI) +7%.Li Auto (LI) +6%.BioLineRx (BLRX) +6%.XPeng (XPEV) +6%.Itau
Seekingalpha · 11/04 13:17
Eastman Kodak Company Third-Quarter 2020 Earnings Conference Call
Business Wire · 11/03 21:20
Stay Away From Kodak Stock Until Its Hobby Is a Business
Kodak (NYSE:KODK) is pledging to move ahead with making Active Pharmaceutical Ingredients (APIs) for generic drugs, even though the company has not received assurances that it will obtain government funding for that business. Unfortunately for the company, investors don’t seem to be enthused about the venture; as of this writing, Kodak stock is down 17% over the last 30 days. Source: Katherine Welles / Shutterstock.com To recap, this summer Kodak submitted a “letter of interest” for a $765 million loan that would enable the company to manufacture APIs for generic drugs. Kodak stock, which was long left for dead, soared on the news. However, Kodak immediately was hit by allegations of   insider trading.InvestorPlace - Stock Market News, Stock Advice & Trading Tips But there’s a bigger problem with this narrative. As investors begin to digest the actual substance of the news, the story doesn’t get better. Kodak has institutional knowledge of chemical manufacturing. But pharmaceutical manufacturing? Not so much. And that makes me wonder if Kodak is committed to this latest venture or if it’s just a hobby that may lead to the company making an acquisition. Either way, I can’t recommend the stock, but I’ll let you decide. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes Globalism Versus Nationalism To understand why the U.S. government offered Kodak this opportunity in the first place, you have to consider the current national debate between globalism and nationalism. Since the 1980s, the United States has been outsourcing American jobs to cheaper, overseas markets. As a result, the U.S. became heavily dependent on these nations for our energy, other commodities, many manufacturing goods, etc. President Donald Trump, for better or worse, took a wrecking ball to globalism. Even before the pandemic, the Trump administration had been focusing on bringing supply chains back to America. According to the nationalists, this is a matter of national security as well as a benefit to the economy. Can Kodak Make America Great Again? With that as a backdrop, the Kodak deal at least makes a smidgen of sense. For years,  generic drugs have been produced offshore. The reality is that many of the major manufacturers of U.S. generic drugs  are not wholly located in America. For example, Teva Pharmaceuticals (NYSE:TEVA) has dual headquarters in Israel and the U.S. The same is true for Mylan (NASDAQ:MYL) which has offices in the United Kingdom and the Netherlands, as well as a “global center” in Pennsylvania. From a 50,000-foot view, this seems to be the reason that Kodak was considered for this loan. Trump and White House Trade Director Peter Navarro made a point to refer to Kodak as a great American company. And the Wall Street Journal recently confirmed at least the broad outline of this line of reasoning. “Trump administration officials said the Kodak alliance would help expedite domestic production of drugs that can treat a variety of medical conditions and loosen U.S. reliance on foreign sources in countries such as China and India.” Of course, this also means that the loan will not be approved if Trump is defeated. In fact, Kodak said as much  when it unveiled its “Letter of Interest” (LOI) for the loan. To be clear, Kodak does have limited experience as a chemical manufacturer. But that doesn’t necessarily translate into the company manufacturing pharmaceuticals  on a large scale. The Bottom Line on Kodak Stock Were you one of the investors who jumped on Kodak stock at the end of July? If so, congratulations, you’re sitting on a gain of nearly 400%. And that’s why it may be time to sell the shares before you commit the cardinal sin of losing your gains. Kodak is attempting to reinvent itself by breaking into a business in which it has little experience. And it’s a field that’s well-established with several significant players, including a number in the U.S. Nevertheless, the re-election of Trump would go a long way towards ensuring that the company does receive the $765 million dollar loan. Otherwise, I don’t think there’s a good chance of this deal being  finalized. And without that funding, it appears that Kodak has a hobby, not a business. And I don’t believe in making investments based on hobbies. On the date of publication Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. Chris Markoch is a freelance financial copywriter who has been covering the market for over six years. He has been writing for InvestorPlace since 2019. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company The post Stay Away From Kodak Stock Until Its Hobby Is a Business appeared first on InvestorPlace.
InvestorPlace · 10/23 14:50
Kodak CEO Says Moving Forward On Generic Drug Ingredients Venture, With or Without Federal Loan
Eastman Kodak Co (NYSE: KODK) CEO Jim Continenza said Monday that the company would push ahead with making generic drug ingredients, irrespective of whether it receives government assistance or not, the Wall Street Journal
Benzinga · 10/20 01:19
Kodak CEO Says Company Will Still Work On Producing Drug Ingredients Amid Uncertainty Over U.S. Loan
-Dow Jones
Dow Jones · 10/19 18:57
Eastman Kodak CEO Says Company Was 'Understaffed' After U.S. Loan Announced, Declined To Comment On Stats Of Stalled U.S. Loan
-Dow Jone
Dow Jone · 10/19 18:56
3 Stocks I'll Hold Forever
MotleyFool.com · 10/15 07:01
Plenty Of Fear In Eastman Kodak Brings Opportunity
The market is expecting a big move within the next 12 months in Eastman Kodak.Although slightly bullish, we would only use options in here in order to control risk.Instead of trying to pick direction, our play here is to sell rich option premium currently on offer.
Seekingalpha · 10/01 00:22
Eastman Kodak To Mandatorily Convery $5M Outstanding Principal Amount Of 5% Secured Convertible Notes Due 2021 Into Shares
-SEC Filing
SEC Filing · 09/30 13:13
Webull provides a variety of real-time KODK stock news. You can receive the latest news about Eastman Kodak through multiple platforms. This information may help you make smarter investment decisions.
About KODK
Eastman Kodak Company is a global commercial printing and imaging company with technologies in materials science, digital imaging science and software, and deposition processes. The Company provides hardware, software, consumables and services to customers in graphic arts, commercial print, publishing, packaging, electronic displays, entertainment and commercial films, and consumer products markets. The Company operates through seven segments: Print Systems, Micro 3D Printing and Packaging, Software and Solutions, Consumer and Film, Enterprise Inkjet Systems, Advanced Materials and 3D Printing Technology and Eastman Business Park. The Print Systems segment comprises two lines of business: Prepress Solutions and Electrophotographic Printing Solutions. The Micro 3D Printing and Packaging segment comprises two lines of business: Packaging and Micro 3D Printing.
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