Monday, August 10, 2020

What the Hell Happened With Kodak?

When I wrote about this earlier, I was convinced that this was an example of Trump-era insider trading. It's the kind of thing that is blatant, out in the open, and will largely go unpunished because there's no one minding the store.

Turns out, there are some legs to this story:
Shares of Eastman Kodak Co. KODK, -24.93% plummeted 45% in active premarket trading Monday, after reports the U.S. International Development Finance Corp. is withholding its planned $765 million loan after the deal came under regulatory scrutiny. The stock had rocketed 13-fold in two days, after it was announced on July 28 that the IDFC would provide Kodak a the loan to help produce the ingredients to maker generic drugs. Under question how Kodak controlled the disclosure of the loan, as the stock soared 25% in active trading the day before the news was reported, amid active stock option trading. Kodak disclosed on Friday that it appointed a special committee to oversee and internal review of recent activity by the company and related parties in connection with the announcement of the potential government loan. As of Friday's close of $14.88, the stock had pulled back 55% since July 29.
I'm still not convinced anything will come of it. Senator Kelly Loeffler and Senator Richard Burr should have been forced to resign for their COVID-19 profiteering. In the Trump era, the only maxim that applies is, "you must let me wet my beak."

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