Thanks to China, Eastman Kodak (KODK) stock suddenly has a future again. – Idaho Reporter

National, NYSE

Thanks to China, Eastman Kodak (KODK) stock suddenly has a future again.

More than five years ago everything started going down for Kodak (NYSE:KODK) stock holders. The future was bleak and this once-upon-a-time-giant was about to become one of the giants that will disappear from the Wall Street scene.

Fast forward today and everything is about to change. A look at the winning lists on the stock exchange will glue your eyeballs on Eastman Kodak on Wednesday. The share price had already tripled on Tuesday, and a whopping 2,000 percent increase has been posted since Monday morning.

What is the reason behind Kodak fast growth?

Eastman Kodak was once a leader in films and cameras. However, the group overslept the digitization. Accordingly, the share plummeted – the group did not have a real future. Until now. Eastman Kodak has now received a $ 765 million loan based on the Defense Production Act.

The group wants to use the funds to manufacture important ingredients for pharmaceutical products and thus to play an important role as a pharmaceutical supplier. “Kodak is proud to be part of American self-sufficiency by producing key pharmaceutical products that ensure security for our citizens,” said Executive Chairman Jim Continenza.

“Never again do we want to rely on shipments from China or elsewhere in order to get lifesaving medical supplies,” New York Gov. Andrew Cuomo said in a statement.

Who is taking the big profits?

But with such a price run in a matter of days somebody started wondering who is behind the first mini rally that started early on Tuesday.

The bigger question, at least to me, is why did a stock that had been trading an average of 86k shares over the previous five days, suddenly trade 1.6 million shares the day before the news of this government loan was announced? Of course that is a rhetorical question as anyone with walking around sense knows the answer. The first thing that comes to mind is, who knew?

Market Watch reader

Someone took huge profits to their bank accounts and we will probably never find out who is the person(s) behind this move. Another question is, why Kodak?

Not a Kodak’s first venture into pharmaceuticals

We all remember Kodak as a company that was into camera related products such as photo-film, all until the days when digital camera took over. But not many people now that in 1988 Kodak acquired Sterling Drug for $5.1 billion.It later sold parts of Sterling Drug, in two separate sales, to Sanofi (for $1.6 B) and the remainder of Sterling Winthrop to the British firm SmithKline Beecham for US$2.925 billion cash.

According to L.A. times for Kodak, the deal was a part of the company’s previously disclosed plans to “shed assets and concentrate on its core business of photography and imaging.” We all know how that went through.

Now, the U.S. gov is giving Eastman Kodak another chance. This time seems like Kodak will have to stick with pharma products in order to save the company. Well, that is, if government keeps those money injections flowing in.

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