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The Rational Stock Market - not! Eastman Kodak.

An FDC loan of $750m to Kodak saw the share price rise 318% with a peak around $50 from $8; it is now sitting at $33. The loan of course doesn't change the company's net worth, but the market, being irrational as it is occasionally, seems to think the company is now worth over 4 times as much as it was two days ago.

Go figure. I don't know why they were singled out for such a singular favour, but so it is. And as to whether future Covid-related production justifies a fourfold increase in valuation I seriously seriously doubt. But so it is. A great many of the current shareholders will surely be left holding the bag.

Comments (13)

I would jump right now buy the Polaroid lab instead. Still the polaroid lab is a better deal.Why Kodak Stock Is Soaring More Than 500% Today
I thought Polaroid was .28 cents a share today and in a nosedive?rolling on the floor laughing
Peaked at 3.70 on June 19, back to 2.21 a week later, now 2.34
KODK volume went from 75k one day to 270m the next - 3500 times the volume
Somebody must be taking a lot of pictures!laugh
Share price soared because Kodak has been given license to produce ingredients used in essential drugs (part of a strategy to reduce dependence on overseas manufacturers)
Yes, CR. I grew up near the original Boston plant/labs of EK. In free markets, also known as the BIG BAD CORPORATE world, by the few people left in the world, who choose their own special ignorance over the vagaries of economic realities.
In these highly successful systems, responsible for yanking a few billion of the poorest of the poor out of poverty, and raising many other boats of real life, all sorts of shady lobbying actions sometimes do help out failing companies, often with loans, as with the now saved and successful Chrysler corporation, a major creater of good tech and factory jobs. Tons of other such examples, as with EU support of the failing airline industries.
In these and many other examples, usually with loans fully repaid, the original corporate distress was due to exigencies of real life. For Kodak and Agfa-Gevaert Film, it was changes in photography. In the case of Airbus Industrie and airlines, one more gift to the world of Communist (in population repression/imperialism only) by the one party hegemonic fascist State, that is Red China. The CHINES-WUHAN VIRUS.
As usual, don't take the fat Vierk Gnome's illiterate words for it---stick your noses into any books on history. And talk with the Vietnamese and others invaded by China, and the regional neighbors today on the SCS, watching disputed islands become militarized. Or Africans under the jack boots of belt and road policies.
Lobbying is one aspect of it all that I would regulate more, if I had my druthers. But I'll take such peccadilloes of free market democracies over the historically verified alternatives. Such as?
Oh, I don't know. Perhaps tens of millions dying of famines in many of the silly communist idiotic experiments on their own people. Don't try to get any of these clinical trials OK'd by any committees on human rights. Gulags archipelago, commissar bullies,secret police, Tienanmen massacres, democracy walls, great leaps backward, state managed media, anticultural revolutions, shoddy and scarce consumer goods, and dozens more such brutal-failed examples. None would ever sail forth with even a modicum of valid ballot boxes in operation.
Yep, give us the sins of the lobbyists any day. But there's more, linked tightly in with the rank hypocrisy of almost all Syndromic, VERY Syndromic, alt lefties. All enjoy the many fruits of the evil corporations, such as that fake, VERY fake, rugger shirt, or IT to conduct the fake, VERY fake, "international teacher" gig, and so much more.
Oh yeah, not a trace of discourse or argument in what our side posts. None at all.
Pathetic. In any extreme you could pick. But typical of the deluded high denial left.
@fourcheeses when you post long irrelevant scrambled egg diatribes in future I will delete them, stick to the topic or p*ss off.
"fourcheeses do you imagine anyone can be bothered reading that long winded blather?
@c-r indeed it did, but it grossly overvalues the company - don't you think? The fundamentals don't justify such a revaluation. The government furthermore knew what the market impact might be, and it sets the brain cogs in motion. Anti-insider trading regulations are pretty good but track-covering is pretty good too.
Examples of tight argument, bolstered with lots of facts, meet school yard style, uneducated, lower class, invective. All certainly can see, and judge for themselves. As can the rank anti freedom of expression folks who threaten blocking the valid, well constructed, arguments of others.
Saul Alinsky would be delighted. As would be most Democrats, and the few Communists, and others left here. Please stay, keep up the same act, and if deleting the the thoughts of others, sooner or late, decent folks get hip.
And it's a small world. Sometimes we victims of unfair, personal physical characteristic bullying, actually come face-to-face with the bullies. One really never knows. Life can be funny, indeed. Most know how that went, and still goes. We all learned it in early school years.
As Carl Phillip Gottlieb von Clauswicz put it---diplomacy by other means.
You provide, oddly, VERY oddly, a sort of education for many here, and most likely elsewhere, especially those who are fair decent individuals, and who take the time and effort to read both sides.
Please stay. And what ever happened to the endless, tedious, schmaltzy braggadocio, about the fake, VERY fake, and pathetic "international educator" gig? Laughable. But most fair folks would never delete any of it.
Res Ipsa loquitur. Who doesn't see it for what it really is?
Relevance? Zilch. Rant is not relevance.
Valuation is a matter for investors to decide. Demand dictates price. Kodak shares could plummet, but also could rise significantly - this new venture could prove lucrative as international tensions (especially with CCP) could - and probably should - see a re-concentration of essential manufacturing operations relocating to home base (if you will).

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